Business Income Insurance in NJ

Running a business can be unpredictable.

As much as you might plan ahead as a company owner, you can never predict what’s around the corner, which is why having insurance is crucial. If you don’t already have business income insurance, otherwise known as business interruption insurance, here’s a helpful guide with information about the benefits of this commercial coverage.

What is Business Income Insurance?

Most business owners wouldn’t dream of establishing a new company and opening for business without an insurance policy to cover damage from a disaster such as a fire, or government-mandated closures.

You might have an insurance policy to protect a store, a hotel or a factory from damages, but have you thought about what would happen if you had to shut down operations temporarily following an incident?

What would happen if you had to shut down operations temporarily following an incident?

Business income insurance is designed to keep you afloat if you have to close premises, on a temporary basis, to carry out repairs or for other reasons. Your policy will cover lost revenue, as well as expenses that you need to pay such as electricity, despite not operating your business from the premises.

What Expenses are Covered?

Policies may vary slightly, but a typical business income insurance plan will cover:

  • The profits you would have generated if you were working normally.
  • Day to day running costs that will continue even when the premises are closed, such as staff wages.
  • Temporary relocation costs: if you have to move to another site while your premises are undergoing repairs, your insurance should cover the cost of relocation. This may include the cost of moving, as well as rental fees.
  • Taxes: your business will still have to pay taxes, even if the premises have been damaged and you’ve had to relocate or scale back operations. Business income insurance can help you to make sure you pay your tax bill on time.
  • Loans: if you have a loan to pay, your provider will expect you to cover the fees every month. Your insurance policy can reduce the risk of missing payments if you are suffering in the aftermath of an incident that impacts operations.

What Isn’t Covered?

There are exclusions that apply to business income policies.

Every plan is different, but the most common exception is environmental hazards such as floods that damage business premises. You won’t be able to make a flood claim through your standard business income policy without additional flood coverage.

You also may not be able to file a claim if your premises have been affected by power lines that have been damaged in a storm. Check the details of your individual policy and speak with your agent before you make a claim, as every plan has different exclusions.

The Benefits of Business Income Insurance

Business income insurance covers the net income that a business would have earned if the incident in question had not occurred. In order to make a claim through a business income policy, companies are required to provide evidence of income prior to the incident.

Business income insurance offers company owners an array of benefits, and is designed to protect businesses from lost income and additional expenses incurred in the aftermath of damage to business premises. By opting for business income coverage, you minimize the impact of unexpected disasters to keeping the company running.

Opt for business income coverage to minimize the impact of unexpected disasters and keep your company running.

If you don’t already have business income insurance, now is the time to explore your options and ensure your company is protected. Contact our team today to learn more.

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