It takes a lot of money to operate a business. Between rent, utilities, employee salaries, and other fixed expenses, much of your revenue gets spent on the daily operations of your business. If your New York business is forced to close due to a disaster, how will you pay those bills? Business income insurance can help cover your expenses while repairs are made, reducing the financial impact on your company.
Each year, businesses across New York suffer fires and other damages that force them to close. As many as 25% of these businesses will never reopen, and the longer you stay closed, the harder it is for your business to survive. While property insurance can cover many of the expenses associated with repairs, it does not replace the income that you’re losing during this closure. You could lose your property, have utilities shut off, be forced to lay off employees, and face other hard choices. Business income insurance replaces your lost revenue and helps pay fixed expenses, allowing your business the time it requires to reopen.
Because all businesses face these risks, insurance experts recommend that New York businesses invest in business income insurance to better protect against these and other common situations.
What Can Business Income Insurance Cover?
Even with property insurance, when your business is forced to close due to damages, you could be facing a large number of bills to pay and have no income with which to pay them. You may be able to relocate to a new temporary space, but how will you afford it? Business income coverage is designed to fill this insurance gap, covering costs including:
Using your financial records as a basis, your policy can also reimburse lost income that goes above these fixed expenses. This allows you to make a complete recovery from your temporary closure without long-term effects on your finances.
When purchasing a policy, you should carefully consider your income, expenses, and other factors to decide on an appropriate per-incident limit for your business.
A business income policy is not a stand-alone policy. Typically, it is sold in a bundle, such as in a business owners policy. You may be able to buy it in conjunction with your property insurance or another policy. By combining it with another policy, this makes business income coverage more affordable. In general, events covered by your property insurance will also be covered by your business interruption coverage. If there are any exclusions, they will be excluded in both policies.
Extra expenses coverage can often be purchased in conjunction with a business income policy. If your business does not need to fully close, but rather just temporarily relocate, extra expenses coverage will help pay for the associated expenses, such as additional rent and utility costs. Together, these policies help provide comprehensive protections for your business.
When a disaster strikes your business, you have a lot of things to worry about. With business income insurance, you can cross how to pay your ongoing expenses off the list. By reimbursing income and helping to pay your continuing expenses, this coverage can help keep your New York business afloat while repairs are made.