What is Business Loss Income


Business loss income is not something business owners like to think about while trying to succeed and thrive. Owning your own business can provide freedom, opportunity, and lucrative financial returns. At times, though, it can also be unpredictable. If you happen to face a business interruption unexpectedly, do you have enough savings to cover the cost?

Business Income Loss

What if there were a way to plan for business income loss without using your savings? Investing in an insurance policy that offers business income coverage can provide the protection you need. The policy assists investors and business owners from lost income due to repairs or replacements that render a property unusable. Find out what you should know about business income loss insurance — including how it may benefit you.

Businesses May Be Covered

Businesses that operate from a physical location are at risk of losing income due to potential problems. If there is a flood in your building or a fire happens, you may be unable to operate for weeks or months. Reparations can take a while and can impact your bottom line. This interruption can have a significant financial impact. Additionally, business income coverage can shield you from this liability and reimburse you for lost income due to property repairs.

Real Estate Investments May Be Eligible

In some cases, real estate investments may also be eligible for this type of insurance. Coverage eligibility depends on the insurer you select. However, if you manage a residential property that becomes uninhabitable, you could lose rental income due to the required repairs. Because the property is your source of income, it may be eligible for coverage under a business income loss policy — but if not, another form of commercial property insurance may provide protection.

Moving Costs Possibly Included

Suppose the event in question forces you to move your operations to another property temporarily. In that case, you may even be able to have your moving costs covered by a business income loss policy. It is advantageous because costs for moving a business can start at $5,000 and go as high as $30,000 for companies with multiple employees. It is a significant expense for most companies, but your insurance policy may cover it if it’s due to property repairs.

Extra Expenses May Be Covered

Business income loss insurance may also cover any additional expenses that your company incurs due to the move and dislocation. These expenses can vary — and your policy’s coverage will change, too — but investing in insurance can mean that you won’t face difficult payments and significant losses of business income interruption. Look for an insurer that can provide the commercial property protection your business needs for every liability, including the potential for interrupted income.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.