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Haylor Risk Management Blog

Business Income Coverage and Beyond...Preparing for Tragedy

Posted by Risk Management Team on Dec 13, 2016 9:28:43 AM

Owning a business can be very rewarding and also very challenging. As a business owner you invest hours upon hours to develop success,  it is only natural to want to protect your investment, and a proper insurance/risk management program is one way of doing that.


There are a number of policies and types of coverage to insure all that you value. Your type of business, number of employees, assets and risk will all play a significant role in the level of coverage that you invest in. A successful business owner will not only think of the present situation but will also have a mindset for the road ahead. Questions to ponder may be: What happens if there is a catastrophic incident to my property? Am I able to cover financials should there be an interruption in operations?   While we are not able to determine the future through a crystal ball, there are ways that we can look ahead to the ‘what ifs’ and prepare for the worst with the purchase of insurance coverage.

Fortunately, Business Income Coverage or Business Interruption Insurance is available as an addition to your property insurance or may already be in a packaged policy. This insurance will help to cover the income that you would have earned if there were no incident at all. The amount paid will be based on financial records. Depending on the type of life changing event, the recovery time may vary between days and months. You will want to be sure that your policy is sufficient to cover the period of restoration. There may be availability to request an extension based on your coverage.

Other coverage options:

Extra Expense is another additional option to your policy. This will help to cover other expenses that have occurred during the period of restoration that would not have existed if there were no event.

Service Interruption If your business is shut down because a storm knocks out utilities serving your building.

Contingent Business Interruption which covers business income loss due to destruction of property owned by someone else. An example of need for this coverage would be: a fire at the factory where you receive raw materials to manufacture your product causing an interruption in your operations and income.

Leader Property coverage helps to protect those who have a business which makes money based on a local attraction that draws traffic for their establishment (i.e. prominent anchor store for a shopping mall). The insured would be covered if there was a damaged or destroyed status to the attraction which would lead to loss of business.

Interruption to operations due to Civil Authority, If the building next door catches fire and authorities order you to evacuate your business, coverage for your loss income would apply

There is no way to know if you will ever use this coverage, but you can have peace of mind in knowing that you are covered for any issues that may arise. We know the ins and the outs of insurance and are prepared to offer informed and personal advice to aid in continued success of your business. Give us a call at 1-800-289-1501 or ‘Click to Chat’ online at www.haylor.com.

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