Business Income vs. Business Interruption Insurance

As a business owner, you know that time is money. If something unexpected happens and forces you to close, you could miss out on much-needed income. But with business income insurance, you don't have to worry so much when certain issues arise. To understand it a little better, let's answer the question we know you're wondering. What is business income insurance, exactly? Simply put, it'll keep your company covered when you need it most. Business income insurance steps in to help replace any loss of business income when a covered issue causes you to close. That's why it's also called business interruption insurance, because you'll need it if your business is interrupted by an accident or disaster you never saw coming. Believe it or not, these kinds of issues bring damages that devastate small businesses every day, and we mean devastate them so much that their doors close and never reopen. We don't want that to happen to you. That's why it's important to have this business interruption coverage. But you'll need to know what it does and doesn't cover when it comes to damages. So let's go over that. What does business income insurance cover? Having this insurance coverage can help business owners pay for bills like mortgage or rent payments. It can also help cover operating expenses like payroll, assuring employees don't miss paychecks. However, business income insurance will only step in if certain issues cause you to close. This includes damages done by wind, made by a fire, or even created by a thief that breaks into your business. These kinds of issues often result in businesses shutting down for what's called a restoration period, which is essentially the time that repairs are being made. Having to close your doors for any length of time can be devastating for small business owners who rely on daily sales or appointments. So how does business income insurance work to cover you? Well, let's say you're a restaurant owner who sells the best pizza in town. At least that's what your Google reviews say. One night, a fire breaks out and ends up damaging your entire kitchen. You have no choice but to shut down while the repairs are made. Your contractor says it could be a few months until you're back up and running. That's when business income insurance steps in. Your coverage goes into action the moment the issue or covered peril, as we say in the insurance world, occurs. Many insurance companies have a waiting period of up to 72 hours until coverage can start. But with business income insurance from The Hartford, we offer a zero hour waiting period. That means your coverage begins at the time your business is physically damaged until the day you're back open. That's what we're here for, to get you back open as quickly as possible while helping replace the income you've lost. We have a huge heart for small business owners, and it shows in our history of protecting them for over 200 years. Of all the insurance companies you can work with, none do small business like us. See what it's like to have a partner that truly puts you first. Get a quote from us today.