A building can be replaced. What about your profits?
Property, auto, and other forms of commercial insurance will cover the cost to rebuild or replace damaged property – but not the losses that can occur while your business is disrupted. Business income insurance protects your company from a loss of income caused by a shutdown of your business operations resulting from a physical loss. It can cover net profit, ongoing expenses, and even extraordinary expenses for a prescribed period of time during which business is disrupted by an unfortunate event.
40% of businesses never reopen after a disaster, and for those that do, only 29% were still operating after two years.
Ensure your business survives when operations are disrupted
Business as usual can be disrupted for any number of reasons. From natural disasters like a fire or hurricane to equipment breakdown, vandalism, loss of key personnel, or a cyber breach, a business interruption insurance policy will replace your loss of income or profits until you’re back up and running again. A typical business income insurance policy can provide coverage for:
- Revenue. This is the income your business would have earned during the closure period if it were operating normally.
- Rent or lease payments. Many leases require the renter to continue making payments even if the premises become unusable.
- The expense of moving your business to a temporary location.
- Employee wages. Essential if you don’t want to lose employees while you’re temporarily shut down.
- Even when disaster hits, businesses are still required to pay taxes.
- Loan Payments. Loan payments are often due monthly. Business income coverage can help you make those payments even when you can’t generate income.
- Losses caused by damage that prevents access to a building.
Complete your business insurance coverage with business income insurance to protect against losses you endure during a disruption to normal business operations. Talk to a Gallo|Thomas Advisor today.