INSURANCE GUIDE
What Is Business Income Insurance?
Business income coverage may help a business recover certain lost income and continuing expenses after a covered property loss interrupts operations.
Quick answer
Business income coverage generally applies when covered physical loss or damage causes a suspension or slowdown of business operations, subject to the policy wording. It can help with certain lost income and continuing normal operating expenses.
What it may address
Depending on the form, coverage may address lost net income, payroll or continuing expenses, extra expense, rental value, or certain dependent-property exposures. Limits and time periods vary.
The property trigger matters
Business income coverage is usually tied to a covered cause of loss involving insured property or another location described by the policy. A business slowdown by itself may not be enough.
Time limits matter
Coverage can be affected by a waiting period, period of restoration, extended business income provision, monthly limitation, or specific time limit.
How to estimate a limit
Review revenue, expected growth, gross earnings, continuing expenses, payroll, seasonality, and the time realistically needed to repair or relocate after a serious property loss.
Related resources
Coverage note: Insurance coverage varies by insurer, policy form, endorsement, limits, exclusions, and the facts of a claim. This article is general educational information and is not a substitute for reviewing the actual policy.
In this guide
- Lost income
- Continuing expenses
- Period of restoration
- Limit selection
Related coverage
Questions about this coverage?
Talk with ECLICK about your current policy, upcoming renewal, or the coverage you are comparing.