Business Income is the portion of your business insurance policy that covers your loss of income due to being able to do business because of a covered loss. A covered loss can be anything from a power outage at your facility to a fire at your building. The loss of revenue during that time period is covered in this section of your policy.

This coverage can be critical for your business and if it is not set up correctly it could cost you, as an owner, thousands if not millions of dollars in sales and lost revenue.

BI coverage will typically have a “waiting period” that will have to be fulfilled once business has stopped and before coverage starts that can be anywhere from 24-72 hours. There is also the option to have a “no wait” that will have coverage start the moment the loss occurs. On top of that there are typically caps on how much coverage you have for any given loss period. Those caps are on your monthly losses as well as a base annual cap that is listed on your policy.

It is important to know what coverage your business needs to be fully protected in every scenario if you are capped at $100,000 for the year and have a loss that hits your business income for $500,000 you will be eating that additional loss.

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