Business Income Insurance
Business income insurance, sometimes known as business interruption insurance, helps cover lost income when your business must shut down due to a covered peril. Covered cause of loss includes fire, theft, wind.
business income insurance
Coronavirus – Does Your Insurance Cover You?
The disruption to business and everyday life caused by the coronavirus (COVID-19) pandemic is resulting in an economic impact for every business. With hourly announcements from health agencies calling for social distancing, school closings, business restrictions, and event cancellations, current news reports indicate the crisis will get worse before it gets better. Much of this disruption is likely not covered by insurance.
The two most asked questions we’ve received over the past two weeks have been:
– Where can I buy coverage for the COVID-19 viral pandemic?
– Does my insurance have coverage under my current policy?
We have consulted with specialists across the Property, Casualty and Professional Lines sectors and offer the following COVID-19 update. Please note this is not an interpretation of any policy language and we recommend that you inquire with counsel for specific interpretation and advice on your particular insurance policy.Read More »Coronavirus – Does Your Insurance Cover You?
Issues with Business Interruption Insurance
Business interruption insurance covers expenses resulted from a covered loss. It will provide payments loss of income, extra expense and other costs related to interruption.
The causes of business interruption can range from cyber attacks to terrorism. The property damage exposure is one of the most threatening to a business.
The top 4 business interruption issues are:
- Getting the values right. It’s vital to get proper limits and avoid going underinsured. Also, a coinsurance clause included with the policy could decrease the amount of coverage.
- Set the right indemnity period. Test your policy to determine if there is a time element period and whether it includes reinstatement and recovery of profit and incurred increased costs.
- Insufficient supply chain coverage. Manufacturing, importing and wholesaling businesses may have first, second, third and even fourth tier suppliers. It is difficult to trace and control the disruption related to supply chains.
- Lengthy and complicated claims settlement process.