Business Income Insurance FAQs

Many business owners ask, “What is business income coverage?” and “Why do I need it?” Business income insurance, sometimes called business interruption insurance, helps cover the loss of business income if your business is unable to operate because of a covered loss. Covered causes of loss include things like fire, theft or wind damage. Best of all, business income coverage is already included in a Business Owner’s Policy (BOP) de The Hartford.

Business income insurance coverage helps replace lost income while you’re recovering from a covered peril that damaged your business’ physical property and you cannot operate. Some costs that business income insurance can help pay for include your:
 

The Hartford’s standard business income coverage has a zero hour waiting period. This means that the coverage goes into effect right after a loss.

Loss of income insurance is another name for business income insurance. It still helps cover lost income if you need to close your business suddenly due to a covered loss. This coverage adds an extra layer of protection for your company beyond just a general commercial property insurance policy.

In some cases, you may encounter extra expenses when your business is temporarily closed for repairs, and you have to move. Extra expense coverage helps pay for the additional costs incurred while your business is unable to operate in its normal location. This coverage can also include coverage for the cost of expedited shipping on a replacement order of your business’ inventory.

We commonly get asked, “What’s the difference between business income vs. business interruption insurance?” The answer is simple. Business income insurance is the same as business interruption insurance. Insurance companies may use either term when referring to the same coverage. Business income insurance acts as business interruption insurance or income protection insurance.

 

For example, if your business is unable to operate and generate revenue due to fire damage, this insurance helps cover your lost income until you can reopen again. This can help you continue to pay your operating expenses, like payroll and monthly bills.

With business interruption insurance from The Hartford, you can report a claim online in as little as 10 minutes. If you’d prefer to talk to someone, you can call us 24/7 at 800-327-3636.

Business income insurance, or business interruption insurance, is included as a part of a Business Owner’s Policy (BOP) with The Hartford, so you cannot purchase it as a standalone policy. The average annual cost our customers paid for a BOP was $1,019, or about $85 a month.¹ Remember, business interruption insurance costs will vary because every industry faces different risks and has their own unique coverage needs.

The equation for business income is: Business income = Revenue - Expenses

Follow these simple steps to calculate your business income for insurance: