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 you buy enough, but not too much, insurance. It will help you convince the insurance company to remove the coinsurance penalty (removal of that beast is a very good thing for you.)

The form looks worse than it is. In most cases, you are only going to fill out two of the four columns.

Chris Boggs of the Insurance Journal and has written an excellent book on the subject of loss of business income. (A test of a good agent would be to ask if he owns Chris’ book! Agents, order your copy here.) On his company’s website, he shares his instructions on completing the worksheet – Here. Part two is Here.

Follow Chris’ instructions and you will have a much better feel for the business income coverage you need.

I just finished helping my oldest daughter with her income tax forms. The IRS 1040 makes this the loss of business income form look like a coloring book.