Often the greatest loss to a business damaged by fire or another insured peril is the loss of income due to inability to continue operations. Several forms of business income insurance exist to protect against these losses. For example, a BOP policy typically includes earnings insurance, which compensates the business for the net loss resulting from interrupted operations.
BOPs often include another type of coverage, extra expense, which provides funding for the business to make the necessary arrangements to continue operations with little or no interruption, including the costs of temporarily relocating and related advertising expenses.
Some examples where a business could use extra expense coverage include: renting another location while the damaged premises are repaired, expediting delivery of new merchandise via air freight to replace damaged contents or recreating documents essential to processing orders.
Some business income coverages can also cover lost income while a business regains its market share or cover income lost due to the shutdown of a suppler or even the loss of an anchor tenant in a shopping center. Additional coverage are available for shutdown due to the disruption of a public utility and by order of a civil authority. Call our office for an analysis of your particular business income needs.