If you are currently carrying San Diego commercial property insurance to protect the building where you operate as well as your business property, it is important to understand each coverage option that is available to you. One of the most misunderstood coverage options within a Business Owners Policy is Business Income cover. Business Income coverage, also referred to as Business Interruption insurance, is a form of protection designed to help business owners when they suffer a loss of income or profits due to a covered loss like fire, theft or vandalism.
Gain a better understanding of Business Income coverage so you understand when you can and cannot file a claim.
When Does Business Income Coverage Pay?
When your business suffers a covered loss or a listed property loss, the profits and income you lose can be claimed. As a business owner, you can file a claim that will reimburse you for the steady income stream that you are losing from the time that the loss occurs, until the time when the property is completely repaired or rebuilt.
The standard property insurance policy will pay to rebuild or repair a building when it suffers a loss, but it does not pay for a loss of income unless you have this rider. The rider also typically comes with an extra expense coverage, which will pay for your rent, utility bills, and other extra expenses you have incurred because of your property loss.
If you want peace of mind in knowing that you will have protection if physical damage closes your doors, adding this coverage rider is a must. Check with your San Diego insurance provider to discuss how much income to report, and be sure to ask about policy limits so that you have enough income coverage to make it during any type of damage restoration period.
For more information on insurance coverage, whether for San Diego car insurance for your employees or comprehensive commercial property insurance, contact American Tri-Star today. A professional representative will be able to provide you with all of the information you need and can answer any of your questions. Dial 619-272-2100 for a free quote now!