business income coverage


It’s no secret that living in the Ozarks necessitates a certain understanding about the weather. That is, we understand it to be perfectly unpredictable and occasionally volatile and dangerous. This past winter’s snow storms, powerful winds, bitter cold, and heavy rain—interspersed with periods of moderate spring-like pleasantness—has been a testament to the ups and downs one must accept when planting roots in southwest Missouri.

The weather, though, can bring with it more than anecdotal wisdom and frequent wardrobe changes. Ozarkians also know how dangerous Mother Nature can be. For business-owners, “dangerous” applies even more broadly.

A business’s most valuable asset is its income. This factor determines whether your business remains afloat. Yet when Mother Nature decides to take issue with any certain area, the outcome can be even further reaching than property damage. If your business’s roof collapses under the weight of snow, or if your company sustains sizable tornado damage, you are looking at more than the cost of repair. Chances are, you won’t be opening your doors anytime soon. Depending on the amount of damage, you could be out a large amount of money in lost income alone.

Business income coverage (sometimes called business interruption coverage) is a safety net for business owners. In times of property damage or economic slowdown due to an act of God, business income insurance covers your business’s income, including payroll, continued operating expenses, and lost net profits in the time between your business’s shutdown and reopening. The ability to receive near-normal levels of income during these crisis times allows business owners the edge they need to help retain staff and stability.

Of course, as all businesses are different, coverage needs aren’t a one-size-fits-all model. Some business-owners would be satisfactorily covered with a simple, straightforward package; businesses dependent on certain external factors might consider necessary addendums to maintain full coverage in any number of scenarios.

For instance, basic business income insurance applies to the property insured. However, your business might hinge upon receiving goods from a supplier. If a natural disaster occurred and affected your supplier, but not your physical location, you wouldn’t be covered. Likewise, if your business is in a shopping center, and the shopping center sustained damage significant enough to close down operations, you wouldn’t be covered unless the damage physically affected your business. Additional coverage can be purchased for these circumstances.

Additional coverage can be purchased depending on other needs. Many business income coverage policies, for example, have a 72-hour waiting period before income is distributed. You can customize your policy to reduce or waive this waiting period. Likewise, policy coverage for loss of income typically covers a period of 30 days. In the event of a huge disaster, such as the Joplin tornado, one can hardly expect realistic repairs and rebuilding in such a limited timeframe. Businesses have the option of buying additional coverage to extend this restoration period up to 360 days.

There are many factors to consider in determining what business income coverage is best suited for your company. This is something you hope you’ll never have to use, but provides peace of mind in a region that has unpredictable fluctuations and has seen heavy damage resulting from Mother Nature’s temper tantrums. Barker Phillips Jackson can help evaluate your business income loss exposures, factoring in everything discussed herein and more, to design a plan that will help protect your business income. Call, email, or visit us at any time. We’re happy to help provide the protection you need.