Silly Story to Explain Loss of Business Income Insurance

I’m finishing up the final draft for the second edition of Simmonds on Bank Insurance. (I’ve been saying that now since 2011.) My editor laughed at my story about loss of business income – then admitted it was effective!

Pretend you own a goose (a building). Your goose lays golden eggs (cash flow). If your goose is run over by a truck, it’s going to take you nine months to get a new goose (get back into operation). You have insurance that will pay for the cost of the new goose (property insurance), but what about the value of the eggs you won’t get in the nine months you’re without a goose?

Loss of business income coverage pays you the value of the eggs while you’re waiting for your new goose.