Extended Business Income Coverage

I have often posted on business income insurance. The coverage pays for lost profits and expenses that continue while a business is rebuilding from an insured loss that causes an interruption in the business. What about the time it takes to get a business back-up and running after construction is complete but when the business is still not … [Read more...]

Business Interruption Week – Part 5 – BOP Trouble

Many small businesses buy insurance in the form of a package policy known as the business owners policy (BOP). It is a great tool for insurance companies to provide common coverage to a multitude of businesses (mostly retail and office exposures). Included are the usually needed property and liability coverages.Within most BOPs is business … [Read more...]

Business Interruption Week – Part 4 – How Much To Buy

In part three of Business Interruption Week (yesterday) I mentioned several times the idea of the business income worksheet - an almost mythic beast (according to many insurance people). Actually, it's not that bad. First, the worksheet is to help you, the insurance buyer, determine what amount of insurance is the correct amount. It will help … [Read more...]

Business Interruption Week – Part 3 – Land Mines

Here are some of the business interruption issues to discuss with your insurance agent:CoinsuranceDoes your loss of business income coverage include a penalty for under insurance? Ask your agent. If the answer is yes, find out how to get rid of it. You may have to fill out a worksheet that helps to determine the amount of coverage you should … [Read more...]

Business Interruption Week – Part 2 – Different Types

Loss of business income insurance pays your lost profits and continuing expenses while your business is shut down after a fire or other insured loss.Extra expense coverage pays your increased costs of operation with the purpose of getting you back into business quickly. EE pays for renting temporary quarters, advertising to get customers back, … [Read more...]

Business Interruption Week – Part 1 – What is it?

For many years I've used the same story to help business owners understand what exactly business income coverage does. It's a silly story but it does the job.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 … [Read more...]

Next Week Is Loss of Business Income Week

Pass the word to your friends and colleagues!Next week I'll be posting every day on issues around loss of business income. This is one of the most misunderstood parts of property insurance - misunderstood by insurance buyers and agents.I'll try to remove the some of the mystery.Stay tuned. … [Read more...]

A Year Is Not Enough – Maybe

Most property insurance programs limit coverage for loss of business income to 12 months. Is that long enough for you? In many areas the time it takes to get permits and meet regulations can eat away 3 months or more. You need a contractor who can move quickly, and you may deal with labor and material shortages if your building is destroyed in a … [Read more...]

Insurance Success Tip #7 – Review Your Business Interruption Insurance

Business interruption insurance protects your profits and pays those expenses that continue after an insured loss.Your store burns. It will take 4 months to rebuild. Business interruption insurance (extra expense coverage) pays to rent a temporary location and to advertise that you are still open for business. It pays your lost profit and those … [Read more...]