Business Income Insurance
Income Protection and Business Interruption Insurance

Your store is your livelihood — so what happens if a fire, storm, or other event forces you to close your doors for an extended period of time? When the unexpected occurs, Business Income Insurance (also known as Business Interruption Insurance) may be able to offer key financial security for retailers.

Despite the importance of this coverage, many retailers haven't heard of Business Income Insurance. Read on to learn how this policy works and whether it could help your business.

What It Is

What Is Business Income Insurance / Business Interruption Insurance?

Business Income Insurance can be bundled with your Property Insurance to help cover instances when a disaster or supply chain interruption forces you to temporarily shut down your business. While recovering from an event, the bills keep rolling in even if you're not open for business. You still need to pay…

  • Rent.
  • Employee salaries.
  • Taxes.
  • Loan payments.

So how does Business Interruption Insurance help cover your lost revenue?

Here's a couple examples:

  • A sporting goods store is forced to shut down for repairs after a fire in the building next door damaged the shared wall. The repairs take a few weeks and the building needs to pass inspection before the storeowner can reopen. Property Insurance may cover damages to the store's property and inventory, while Business Income Insurance may help cover the income the business loses while it shuts down for repairs and inspections.
  • A windstorm knocks out power, shutting off the air conditioning and refrigeration overnight at a flower shop. When the florist comes into work the next day, he finds a mess of wilted flowers. Property Insurance with Business Interruption may reimburse the florist for lost income as well as lost inventory, helping him to pay his rent, payroll, and other overhead costs.
Key Details

Key Details of Business Income Insurance

It's not uncommon for business owners to admit they've never heard of Business Interruption Insurance. Yet, it can be included in one of the most common coverages, Property Insurance.

Because this coverage often goes unnoticed, let's look more closely at what it offers and how you can get more from Business Income Insurance and Property Insurance.

Lost Income from Property Damage

If a windstorm tears the roof off your building, you'll have a hard time convincing customers to come inside and browse your goods. The damage caused by windstorms, fires, vandalisms, and other events covered by your Property Insurance policy might force you to close your doors for an extended period of time. If that happens, Business Interruption Insurance may cover the income your store loses and help you pay salaries and other bills that could quickly mount.

Contingent Business Income / Supply Chain Interruption

Some retailers can get income insurance to cover problems that can come up when a business they rely on is knocked out. If your supply chain is interrupted by a storm (or other claims covered under your policy), your insurance may reimburse for income you lose if you can't carry the inventory you normally would.

Because modern businesses rely on goods from suppliers around the world, this coverage can be vital. Say you're a food retailer that specializes in guacamole. If there's a supply chain interruption that causes you to be unable to get your avocados from Mexico or California, you could be covered for lost income. Isn't it nice to know we finally have guacamole insurance?

Getting Coverage

How to Get Covered for Lost Income

As a retailer, your livelihood is closely tied to your physical store and a disaster that affects you or your suppliers could force you to lose weeks or months of income. Fortunately, Business Income Insurance may be able to offer you financial security.

How do you make sure this is included in your Property Insurance? Talk to an agent that specializes in retail insurance. Insureon can help you find coverage that offers the coverages that make sense for a retailer.

Use our online insurance application for free quotes on store insurance.

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