When it comes to insuring your Massachusetts or Connecticut business, you are probably focused on protecting your valuable assets, like any business property and vehicles, and on safeguarding yourself and your company from potential costly liability issues. However, in doing so, you may be overlooking coverage that could be vital for securing the long-term future of your business: Business Income and Extra Expense Coverage.
If your company were to experience a catastrophe such as a fire or natural weather disaster, it could disrupt normal business operations for a very long time. After a tragic event like these, it often takes several months, if not longer, as well as a great deal of money, to get a business up and running again.
Should you be faced with a business interruption like this, all your time and energy will be spent on getting your business back to where it was before disaster struck. But while you are working with your insurance agent to file a claim, meeting with insurance adjusters to assess damages, and managing an enormous punch list of things you need to do to put your business back together again, how will you take care of your customers who are waiting on their orders to be fulfilled and how are you going to hold onto your loyal employees when you don’t have the ability to pay them? Not to mention, how will you replace both the income that you had planned on earning during this period and cover the extra expenditures you may have to make in order to resume your operations.
As a business owner, all of these demands on you – along with all of these uncertainties – can lead to many stress-filled days, long sleepless nights, and just an overall feeling of being over whelmed.
This is exactly why you want to have Business Income and Extra Expense Coverage as part of your business insurance solutions. These powerful protections can help you cover payroll when your business suffers a loss, recoup lost income when your critical equipment and machines are not operational, reimburse you for extra expenses incurred to keep your business open, and much more.
Business Income coverage, sometimes referred to as Business Interruption Coverage or Income Protection Insurance, is your business’s security against loss of income or profits should you endure a covered peril, such as a fire, natural disaster, theft or vandalism. The lost income may be due to a property loss, disaster-related closing of the business facility, or the rebuilding process after a covered event.
Having standard Property Insurance is of course critical. However, while Property Insurance specifically covers any physical damage to either your business or business-related property, such as machines, computers, and office furniture, it does not protect the profits that would have been earned during the period when either your business is closed or production is halted due to a covered peril. You need to have Business Income Coverage to do that!
You may also want to add Extra Expense Coverage to your Business Income Coverage depending on your specific business needs. This important coverage should pay for your expenses above and beyond your normal operating expenses while your business recovers from a covered loss. For example, this coverage could help pay for the cost of renting a temporary location while you are rebuilding or for the expense of leasing machinery that allows you to continue doing business.
Both Business Income and Extra Expense Coverage are applicable to all types of businesses, from manufacturers and contractors to retail shops and car dealers, as they are designed to put a business in the same financial position it would have been in if no loss had occurred. These coverages can be added to your business’s existing Property Insurance policy or be included in a comprehensive package such as a Business Owner’s Policy (BOP).
Identifying the optimal insurance coverage solutions for your business should always begin with a thorough risk assessment from a business insurance professional.
The risk management and insurance specialists at HUB International are available to meet with you to learn the ins-and-outs of your unique business situation, to identify your distinct exposures, and to understand your special coverage requirements. If you partner with our team, you can be confident that we will take the time to do a careful investigation of all the risks your business may face, from the most obvious ones to the most obscure.
Once we complete our detailed evaluation of your business, we will work with you to ensure that you have a “Plan B” and the proper coverage in place in the event you ever experience a major loss. We want to do everything we can as your insurance professional to help you get your business up and running as soon as possible after a claim has occurred, which includes assisting you in determining the amount of Business Income and Extra Expense coverage you need.
Please contact HUB International today and we will gladly start working with you to find the best options to protect your business and everything you’ve invested in it. Our team will customize an insurance plan for your company, with the critical coverage options you need, from one of our many reputable insurance carriers, all at a price that you can afford.
If you are ready for a more personal relationship with a trusted insurance agent who is always looking out for you and your business, then call us today at (800) 243-8134 or stop into either of our two convenient Massachusetts offices.