Insurance is generally purchased to protect against building loss, loss to contents or liability losses.
Unfortunately, it is in the intangible exposures that we do not see and do not prepare for that ultimately can have the largest impact on our businesses.
Often the key to effectively recovering from a catastrophic event is loss of income coverage.
When making your insurance purchases, don’t forget to inquire about business income coverage. This coverage can insure against loss of earnings, rents and extra expenses you incur during the time it takes to restore your building back to its operational condition.
Added business income coverage can be obtained through optional endorsements. these endorsements can protect you from a business income loss that may have occurred due to an off-premises utility service failure or damage to a property of another company that you depend on to operate your business.
To have your business fully protected, business income coverage should be considered as part of your insurance package.
SOURCE: Auto-Owners Insurance Update Volume 8, Issue 2, April-June 2014