Disasters happen.  Businesses temporarily close. Revenue streams dry up. Unfortunately, expenses still continue…and often rise significantly. Following a major loss, there are lot of things businesses can do without-revenue isn’t one of them. Business Income coverage increases a business’ ability to survive a substantial loss. Have you reviewed your coverage lately?
Most businesses underestimate the amount of time it takes to return to normal operations. Consider the following:
– Cause and origins investigations and debris removal can span 1-2 months
– Securing permits can take 2-3 months (even longer in urban settings due to density and local authority.)
– Reconstruction can take 7-12 months (longer for complex operations)
– Replacement of machinery and equipment can take 2-18 months
– The EPA and other regulatory agencies can create further delays
Business Income coverage reimburses business owners for lost profits and continuing fixed expenses during the time their businesses are interrupted or impaired as a result of a covered peril, such as fire, flood or power outage.  Typically, Business Income insurance is incorporated into commercial policies purchased by larger companies and Business Owners Policies (BOP’s) for small to mid-sized companies.  However, insurance companies many times offer customizations and specializations such as Payroll Insurance coverage and Additional Expense coverage.
Educating yourself about proper insurance coverages should be a very important part of your business planning. When businesses plan effectively for disaster recovery, companies increase their chances of a speedy return to full operation.  If you would like help reviewing your current coverages and policies, please contact one of our knowledgeable agents here in our office.