Business Income Insurance - What It Is and Why You Need It

Sally Miles.

If your business has to stop operations unexpectedly, there would be loss of business income. There is a type of insurance coverage which can help a business owner meet payroll and other operating expenses and replace actual loss of net income during the time required to repair or replace the damaged property after a loss.

There are a few important things to know about business income coverage:

  • Business income is defined as net profit or loss before income taxes that would have been earned or incurred if no physical loss had occurred.
  • This coverage is triggered by direct physical loss or damage to your property due to a covered loss AND a partial or full suspension of operations.
  • Business Income coverage can be programmed to fit the needs of a specific business.

We recommend asking your insurance agent to help you determine whether  business income coverage is essential for your operation. It could mean the difference between reopening after a covered loss  or closing your doors for good.

Ask Allen. We are here to help.

This blog post is written by Sally Miles, a member of our business insurance, based in Belfast.

If you appreciated reading this news story and want to support local journalism, consider subscribing today.
Call (207) 594-4401 or join online at knox.villagesoup.com/join.
Donate directly to keeping quality journalism alive at knox.villagesoup.com/donate.
Comments (0)
If you wish to comment, please login.