Blog Layout

Business Income Coverage: An Extra Layer of Protection for Your Business

The complete shutdown that so many businesses experienced during the first several months of 2020 raised more questions than ever on what exactly a commercial insurance policy covers when a business is suddenly unable to operate, and its income is affected.

In the interest of continuing to educate our fellow business owners on what the capabilities of their insurance coverage is, we’re pleased to discuss the subject of Business Income coverage in our blog this week.


What Does a Commercial Property Policy Cover?

A Commercial property insurance policy covers physical property damage to a business’s equipment and merchandise that results from a catastrophic event like a fire, theft, lightning strike, or smoke damage.


What it might not cover, however, is the loss of income the business incurs during the time that it is being repaired and brought back to a pre-loss state. This is where Business Income coverage (also known as Business Interruption coverage) comes in to play.


How Does Business Income Coverage Work?

Depending on the extent of the damage, it may take time for the business to get back up-and-running as usual. During the period in which the business is brought back to its pre-loss state, income can decline or cease altogether, creating financial hardship for the business.


Business Income coverage provides insurance for the loss of business income due to damage to physical property. This means that during the business’s restoration period, the Business Income coverage will be responsible for replacing profits you would have made or provide funds to operate in a temporary location for the time being.


What Does Business Income Coverage Address?

Business Income coverage WILL address the following:


  • Mortgage and rent payments
  • Employee wages and payroll
  • Loss of net income or profit for the period of restoration
  • Loan payments
  • Tax payments


Business Income coverage WILL NOT address the following:


  • Epidemics, diseases, and viruses.
  • Acts of Government (war, mandated shutdowns, etc.)
  • Extreme weather events, such as earthquakes, flood, and mudslides. These events typically require their own separate policies.
  • Certain operating expenses, such as marketing, insurance, and funds allocated for research and development.


Is Business Income Coverage Right for You?

Our commercial insurance firm will help you determine if business income coverage is ideal for you and build a policy that best suit your needs. We serve Goshen, Middletown, and Warwick, NY

November 7, 2024
Explore the factors that determine your homeowner's rates with the help of J. Hoffman Insurance. We offer useful information across Goshen, NY and beyond!
March 5, 2024
Learn more about fluctuating personal insurance rates with the help of J. Hoffman Insurance. We offer useful information across the Middletown, NY region.
March 5, 2024
Learn about the importance of commercial auto insurance with the assistance of J. Hoffman Insurance. We assist clients across Middletown, NY and beyond!
December 21, 2023
Protect your restaurant with this helpful information from J. Hoffman Insurance. We offer reliable commercial insurance support across Goshen, NY.
December 21, 2023
To learn more about car insurance and the factors that impact rates, contact J. Hoffman Insurance today! Our business insurance firm serves Warwick, Goshen, NY, and beyond.
December 21, 2023
Whether it’s home, auto or business insurance, learn more about how your deductible works to better understand your policies with J. Hoffman Insurance! We serve Middletown, NY, and beyond.
December 21, 2023
These days, employment practices liability insurance is a must! Thankfully, J. Hoffman Insurance proudly assists clients across the Middletown, NY region.
December 16, 2023
Ensure you're protected against the unexpected with the support of J. Hoffman Insurance. We help clients receive excellent rates in Goshen, NY and beyond!
December 16, 2023
Eliminate the financial strain of water damage with the right insurance policy! J. Hoffman Insurance provides helpful information in the Warwick, NY area.
December 16, 2023
According to a report released by the National Highway Traffic Administration, car crashes and crash-related fatalities have increased substantially across the country over the past two years.
More Posts
Share by: