As a business owner, you face different types of risks, some of which can affect your company’s operations in various ways. When an incident such as theft or fire strikes, Loss of Income Insurance can come in handy to help minimize your financial losses.
What Is Business Interruption Insurance?
Loss of Income Insurance (also known as Business Income Coverage) covers losses arising from the closure or interruption of business due to a covered risk, allowing you to pay for expenses such as:
- Payroll
- Taxes
- Mortgage
- Utilities
Covered causes of loss typically include fire, theft, and wind. However, like other forms of coverage, business interruption insurance has its limits, and it’s important to understand what those are before purchasing the policy.
The type of coverage you need depends on the nature and complexity of your operations. Some policies only cover physical damage that results in direct loss to your business, while others may extend to indirect losses.
Contact our experts at Carter Bradley to learn more about Business Interruption insurance and build a policy customized to your needs.
How Does Loss of Income Insurance Work?
When an insured event occurs, business owners should notify their insurer and provide evidence of financial loss and interruption of business due to the event in question. The insurer will then assess the claim and determine the compensation due.
It’s essential to note that the process of assessing claims may vary between insurers and the policy limitations. Remember: providing all required documentation to the insurer in a timely manner goes a long way toward avoiding delays in the claims process.
The policy period may also vary depending on the insurer- typically, business interruption policies are available for 12 to 24 months. It is essential to discuss with your insurer or agent the types of risks your business is most likely to face so you can get personalized coverage.
Wrapping It Up
When a business suffers financial losses due to unexpected interruptions, it could face an uncertain future. Loss of Income insurance can help to minimize financial losses and ensure that your business stays afloat during recovery.
Understanding the different types of coverage and policy periods available can help ensure that your business can resume operations with minimal downtime.
If you’re a business owner and haven’t considered loss of income insurance, it’s time to evaluate your risks and get the coverage you need to protect your business.
Need Loss of Income Insurance in California? Carter Bradley Insurance Solutions Can Help
At Carter Bradley, our team is solely focused on your unique needs to find the best prices and coverage you require for your business, home, auto and life insurance.
We are located in Corona, California. Contact us today by email at info@carterbradleyinsurance.com, by phone at (951) 547-4240, or through our social media accounts on Facebook, Twitter, and LinkedIn.
