How does business income insurance differ from other types of coverage?
Most business owners are well aware of the need to carry fire and related property coverage on their building and business property. Similarly, most insurance agents, brokers or producers recognize this as the first step in securing tangible asset coverage. Business income insurance, which goes a step beyond property coverage, is designed to make up for lost income and cover continuing normal operating expenses incurred (indirect loss) as a result of a fire or windstorm (direct loss). In so doing, business income coverage responds to the income statement and the expense (liability) side of the balance sheet of the business, while fire coverage protects the physical (asset) side of the balance sheet. What features should companies look for in business income coverage? The basic features in this type of insurance are largely standardized across the industry, so companies should focus on where they can receive the best customization for their specific needs. For example, a retail store ha
