Ask the Insurance Expert – Landon Halmrast
Business Insurance: Revenue Protection
If your business is undergoing a claim that interrupts the income you can produce, you will want to have business interruption coverage on your commercial policy. Business interruption insurance compensates you for your lost income while your business is closed due to an insured loss.
Business Interruption coverage is not always automatic, so be sure to have your agent include this coverage in your policy.
Types of business interruption coverage
You should be aware of some different options available for business interruption coverage. At Western Financial Group, our commercial brokers are trained to help you make the right selection to protect your business’s profits.
Gross Earnings coverage generally only pays until your insured property is replaced or repaired. As soon as your business resumes, the coverage stops paying, even if you haven’t regained your previous level of income generation. This coverage is typically inexpensive, but may not be enough coverage depending on your business.
A Profits Form policy continues to pay benefits until your business resumes its normal, pre-claim level, up to your policy limits. This is often more expensive because it offers more comprehensive protection.
Extra expense insurance is designed for businesses that need to keep running while they’re recovering from damage. It covers extra expenses such as outsourcing work or relocating.
If you generate income from buildings or space you rent out to others, you may want to consider Rental Value coverage. If you are out rental income because of an insured loss, this coverage provides you with the lost rent money until the repair or replacement is complete.
Actual Loss Sustained is a broad form of business interruption insurance. Similar to a Profits Form policy, but it pays up to the actual loss sustained. Example: if your business property policy insures you for fire, and that fire is damaging enough that you can’t operate your business, you’ll be covered for the loss of gross profits and extra expenses, including rental value.
Let us help your business make the right choice, call today for a free quote at 403-526-2885 or visit our website at www.westernfinancialgroup.net for more information.