Mahopac, New York businesses must insure themselves against a variety of potential disasters. In addition to protecting their property, assets, products, and vehicles, they should also protect themselves against interruptions in their daily operations. If you own a business, here’s a look at what business income insurance, which is often available through a business owners policy, could do for your company.
For Mahopac Business Owners, Business Income Coverage is an Important Part of a Business Owners Policy
The Cost of an Interruption Can Be High
For businesses, a disaster’s effects often extend beyond any property damage that the disaster causes. Disasters cause interruptions -- and those interruptions can be even more costly than the actual property damage a disaster causes. If a business is unable to operate because a building, pieces of equipment, inventory or a vehicle has been damaged, the business may:
Still have to pay for contractual obligations, rent, or utilities while shut down
Incur extra expenses to keep or get the operation running
Until the damaged items are repaired or replaced, and operations can return to normal, a business may suffer. The goal of the insurance company and business owner is to get operations running normally again as quickly as possible.
Business Income Coverage Protects Businesses
Business income coverage provides protection against these types of risks. As with all insurance coverages, a policy’s specific benefits will depend on its terms and conditions. In general, however, business income coverage is designed to help businesses cope with a loss of income due to a covered disaster.
By providing income when a business can’t operate, an insurance policy can give a business the money it needs to pay employees, or stay current on loan payments and bills. For companies that are recovering from significant disasters and can’t afford a long, significant drop in revenue, such coverage can be a lifesaver. Without it, many businesses would fold if they can’t operate at normal capacity for an extended period of time.
Businesses in Mahopac, NY Can Get Coverage Through a Business Owners Policy
While some insurers may offer business interruption coverage as an endorsement to the policy, many small businesses in Mahopac purchase this protection through a business owners policy. A policy combines several different coverages into one convenient bundle. In addition to business income coverage, a policy will include commercial property coverage and general liability coverage. Grouping these into one policy makes paying premiums easier, and it sometimes helps businesses qualify for discounts from insurers.
To find a business owners policy that has business income coverage and other protections your particular business needs, contact an independent insurance agent who serves Mahopac, NY. They’ll be able to discuss how an interruption could affect your business and help you select the right amount of business income coverage. They’ll also be able to help you consider other important coverages and find a solution that has all of the coverages your business needs.