Your businessís income matters! How do you protect the intangible?

Posted by: Aaron Brown, Green Owens Insurance on Friday, August 29, 2014 at 12:00:00 am

Your businessís income matters! How do you protect the intangible?

When we think of insurance, we think of coverages that protect the most obvious and visible elements of our business. Things like our buildings, business personal property, liability losses, injuries, etc.

Unfortunately, it is the intangible exposures that we do not see and do not prepare for that ultimately can have the largest impact on our businesses.

When are businesses are shut down temporarily due to something like a fire or windstorm, our businesses suffer from a loss of sales from doing business, and loss of income can be more damaging to your business than the fire or windstorm itself. We still have ongoing expenses to pay for, such as payroll, bills, other overhead expenses, and more. We have to consider the costs of advertising that our businesses are temporarily closed, and not out of business. Of course, we also have our own income to consider, income that provides for our families.

So how does a business owner prepare for these intangible losses? The answer is Business Income and Extra Expense coverage.

When making your insurance purchases, don’t forget to inquire about business income and extra expense coverage. Ask how long the coverage’s pay out, and how soon after your claim.

This coverage can insure against loss of earnings, rents and extra expenses you incur during the time it takes to restore your building back to it’s operational condition, or until you find a new building to move to.

 Added business income coverage can be obtained through optional endorsements. These endorsements can protect you from a business income loss that may have occurred due to an off-premises utility service failure or damage to a property of another company that you depend on to operate your business.

To have your business fully protected, business income and extra expense coverage should be considered as part of your insurance package.

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