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The Curious Bag
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Business income (BI) insurance is the form of insurance that compensates you for lost income whenever your business property suffers damage. Damage to business property, such as a warehouse fire or a vehicle breakdown, can halt the distribution cycle which will halt your income.
Period of Restoration
This is the period of time in which the insured will receive insurance benefits and denotes the period during which the business is being restored to its previous production capacities.
Time
The time period during which benefits are received start from the moment the damages occur until the time in which the restoration should have been completed as stated by the insurance policy.
Goals
The goals of a business income insurance policy are to cover the costs needed to return the company to the production levels it would have been at if the accident had never happened, and to compensate for loss income.
Power Failures
One of the biggest controversies with BI insurance is that it does not cover income losses as the result of power outages. This often catches business owners off guard.
Tailoring
You should have your BI insurance policy tailored to the specific risk factors common to your geographical location.
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