Definition of Business Income Insurance

Save
Next Video:
How to Purchase Business Insurance Online....5

Business income insurance is supplementary coverage that goes along with your property policy. Get a definition of business income insurance with help from an insurance professional in this free video clip.

Part of the Video Series: Insurance Information
Promoted By Zergnet

Comments

Video Transcript

Hi, I'm David Sumpter, commercial insurance specialist with Wateridge Insurance in San Diego, and today we're going to talk about business income insurance. So, what is business income insurance? Business income insurance is a supplementary coverage that goes along with your property policy. Most insurance policies these days have some amount of business income coverage and what it's meant to do is in the event of a covered loss. Now it's important if you have a property loss like fire, windstorm, hail, smoke damage, vandalism, if it's a covered loss, the insurance carrier is also going to pay some of the cost associated with getting you back onto your feet. So, in the case of a covered loss, you can actually submit for payment of some things that are considered business income expenses. Typically, this is a loss to net revenue. If you operate a business, you can no longer occupy the space you are occupying before. The insurance carrier is actually going to pay for your net revenue loss until you're made whole or when you get back onto your feet and making 100 percent of what your expectations were for net revenue. If you are a building owner, it may actually pay for your lost rental, lost rental value I should say. So, business income is a coverage that goes along with your property policy but there are also additional coverages that go along with business income which could include ordinary payroll expenses and other coverages that you can discuss with your broker. Sit down with your broker, have them explain this to you because it's a really important coverage that can really get you back on your feet when the building burns down. I'm David Sumpter, commercial insurance specialist with Wateridge Insurance, and now you understand business income.

Featured

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!