Business Income Losses and Commercial Insurance

Something that many an entrepreneur has wondered: To what extent can commercial insurance help you with business income losses, what kind of business losses are covered, and under what circumstances can we collect?

What we’re talking about when we ask these questions is business interruption insurance. Business interruption is a type of commercial insurance that can help to bridge the gaps where a standard policy might not.

For instance, under a business interruption policy, also known as business income insurance, a beneficiary can collect on lost revenue resulting from, for instance, a fire, flood or windstorm.

Here are the costs that a business interruption policy might cover:

• Rent and lease.
• Revenue lost due to temporary closure of a business.
• The expenses involved with operating from a temporary location.
• Advertising (specifically, advertising to direct customers to your new location).

The circumstances under which you are able to collect on your business interruption policy aren’t so difficult to understand: If your commercial policy covers whatever type of damage it is that your physical location has suffered, then you can file a claim on your business interruption policy.

Note that this type of policy does not cover, for instance, revenue lost due to a failed product launch. For the most part, the risks that we take in business are ours alone to take. However, a business interruption policy from someone like DePaulo Agency can help to ensure that, should something happen to our offices, our restaurant, our convenience store, that we live another day to keep taking those risks, keep innovating, and keep pushing ourselves to greater heights within our chosen industries.