What Is Business Income Insurance?

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Business Income Insurance Coverage

Business income insurance, sometimes known as business interruption insurance, helps cover lost income when your business must shut down due to a covered peril. Covered cause of loss includes:
 
  • Incendio
  • Robo
  • Viento
For example, say your restaurant’s kitchen catches on fire. As a result, you must close down your business while you repair the damages. Your business income insurance can help pay your lost income during this time.
 
To fully understand your business income insurance coverage definition, you’ll need to understand these key terms:
 
  • Actual loss. This refers to the monetary payment you receive from insurance covering the actual loss of income to your business.
  • Business income. This includes any income that would result from regular business activity.
  • Period of restoration. This refers to the waiting period when you are repairing your business.
  • Extra expense. In some cases, you may encounter extra expenses when your business is temporarily closed for repairs and you have to move. This can also include the cost of expedited shipping on a replacement order of your business’s inventory.
  • Service interruption/contingent business interruption (CBI). This refers to the interruption in your operation or the shutting down of your business. If your business is closed, there are still operating expenses to take care of.
  • Leader property. This is an endorsement that helps cover physical loss or damage to your business. This includes damaged property that you may not have owned directly.
  • Interruption by military or civil authority. When natural disasters strike, civil authorities may order evacuations. You may have to shut down your operation as a result. Depending on your policy, your business income insurance can help cover your lost income when you’re interrupted by civil or military authorities.

Business Income Insurance Coverage

Your business income coverage, also known as business interruption coverage or extra expense insurance, can cover lost income when you have to close your business suddenly. This coverage is an extra layer of protection beyond general commercial property insurance.
 
To better understand business income coverage, consider these scenarios:
 
  • Say your candy shop is in an attached building. After the store next to yours catches fire, it spreads to your business. As a result, you have to shut down your operation to repair the damages. Your business income insurance can help cover your lost income during this time of restoration.
  • Say you own a computer store. After you close for the day, thieves break in and steal valuable inventory. As a result, you have to temporarily shut down while you replace your inventory. Your business income insurance can help cover your lost income during this time. 
  • Say you own a sports equipment store. After a hurricane hits in your area, your building suffers from extensive wind damage. As a result, you must shut down your operation to repair the damages. Your business income insurance can help cover your lost income during this time of restoration.
The payout amounts you receive on your business income coverage are based on your business’s income and expense records. As a business owner, you should store these records in a safe location. You may even want to store them off-site or in digital locations.
 
While business income insurance can help you cover your lost income, insurance companies may not help cover lost income in the event of:
 
  • Closures from inoperable power lines. Adding an endorsement to your policy can help cover this.
  • Losses from closures caused by damages not covered under your insurance policy.
  • Losses from partial closures.
  • Income that isn’t documented.
It’s important to note that business income insurance may not also cover all of your business’s utilities.
 

Loss of Business Income Insurance

Business income insurance helps cover you and your business due to the loss of business income. Keep in mind that business income insurance is also known as business interruption insurance.
 
In another example, say your business burns down. As a result, you’re forced to move to a new location. During this time, your business income insurance can help cover your lost income. It could also help cover the extra expense of relocating.
 
As a small business, you want to reduce your risk as much as possible. At The Hartford, we can help teach you how to reduce your risk exposure. We offer a wide selection of commercial insurance coverages that are cost effective and help businesses put their best foot forward. Our coverages will help you through unforeseen losses.
 
To get a business insurance quote, call our representatives today at 855-829-1683. También puede obtener una cotización online – it’s fast and easy. 
 
The Hartford no será responsable de ningún daño relacionado con el uso de la información proporcionada en esta página. Consulte con su agente/corredor de seguros o compañía de seguros para determinar las necesidades específicas de cobertura, ya que el contenido publicado aquí se ofrece con fines informativos solamente.
 
La información contenida en esta página no debe interpretarse como asesoramiento legal, de Recursos Humanos, financiero o de seguros específico, y no es una garantía de cobertura. En el caso de una pérdida o reclamación, las determinaciones de cobertura estarán sujetas al lenguaje de la póliza, y cualquier pago de reclamación posible se determinará luego de que se investigue la reclamación.
 
Ciertas coberturas varían según el estado y es posible que no estén disponibles para todas las empresas. Todos los servicios y coberturas que se describen en esta página pueden ser ofrecidos por una o más de las compañías subsidiarias de seguros de propiedades y contra accidentes de The Hartford Financial Services Group, Inc. En TX, este seguro es redactado por Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company y Hartford Fire Insurance Company. En Arizona, Nuevo Hampshire, Washington y California, el seguro es redactado por Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company y Twin City Fire Insurance Company. The Hartford® es The Hartford Financial Services Group, Inc. y sus subsidiarias, incluida Hartford Fire Insurance Company.
 
The Hartford® es The Hartford Financial Services Group, Inc. y sus subsidiarias, incluida Hartford Fire Insurance Company. Sus oficinas centrales se encuentran en Hartford, CT.
 
* Los comentarios de los clientes son recolectados y tabulados por The Hartford y no representan a todos los clientes.
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