66% of small businesses do not have or lack business interruption insurance coverage (AKA business income), according to a Nationwide Insurance sponsored survey. Small business want to save money wherever they can but small businesses are the ones that need this coverage more than ever.
What is it?
Business income coverage consists of two factors:
- The Net Income that would have been earned or incurred
- AND continuing normal operating expenses (including payroll)
This coverage is similar to additional living expense on a homeowners insurance policy or loss of rent on a home rental policy. This coverage helps pay for what you are missing out on because of the claim you incurred,
Why does my business it?
More than half of the respondents from the Nationwide sponsored survey said it would take them at least three months to recover from a disaster. 44% said they don’t have access to a generator if disaster hit.
How much more is it?
Business interruption coverage is a small increase in premium to be added onto a policy. It all depends on the type of business and the amount of coverage but is a great thing to at least talk with your insurance advisor about.