Business Interruption Insurance

Business Income (BI), or Business Interruption insurance, helps businesses protect against financial losses due to suspended operations because of a covered claims event, such as a tornado or fire that causes direct physical property damage.

Did you know that 25% of businesses do not reopen after a disaster? It’s a startling statistic, but it can be avoided if businesses include business interruption coverage in their insurance plans. Unfortunately, according to the National Association of Insurance Commissioners, only 30-40% of small businesses have this coverage. Don’t risk losing everything you’ve worked so hard for in the event of an uncontrollable claim. Consider adding business interruption coverage to your insurance plan.

Ohio Commercial Insurance

You deserve the security of knowing that if the worst happens, your people will be taken care of while the business gets back on its feet. Our team at Hitchings Insurance take the time to create a strategy to manage your comprehensive commercial insurance needs. All the advantages of a national firm with the personal attention of a ‘people-first’ approach to business.

Business Income Insurance Coverage Terms Defined

What is Business Income Coverage?

Coverage to protect the business’ income while the premises are being restored to pre-loss conditions.

What is Extra Expense Coverage?

Many times, after a claim, a business starts to have additional expenses that come up. Items like renting an additional facility to continue to operate, renting equipment to temporarily replace damaged items, additional utility bills, and additional advertising costs to let the public know about the changes, among other things, cause a business to have extra expenses.

What is Business Income Coverage?

Important for our manufacturing customers, this coverage helps protect against supply chain disruptions but typically requires a direct physical loss to the supplier for coverage to apply.  Ask yourself – if a supplier goes down, would it cause you to shut down, or partially shut down and cause a financial loss? If so, do you want to have a discussion on contingent business income?

What is Service Interruption Coverage?

This is business income coverage against the loss of utilities to your property. Should you lose your power supply, water supply, or other important utility, coverage would kick into your lost income due to lack of utility supply to your building.

What are Deductible Options for Business Income Coverage?

Deductible options for business income coverage plans differ from a standard property coverage item. Typically, business income coverage forms use a time deductible. 24 hours and 72 hours are very common. After the time elapses, coverage would kick in.

What is the Period of Restoration?

The standard restoration period is 30 days, but most policies can be endorsed for 180 or 360 days, which we recommend.

What does Business Income Cost?

There is no set figure to describe, but there are rating factors that affect premiums.
• Coverage limits – How much coverage is needed?
• Claims history – The number of claims you’ve had in a 5-year period could affect your pricing.
• Sales – Annual sales are a common rating factor.
• Location – Where you’re located can be a rating factor used.
• Industry– your business type is the largest pricing factor outside of the insurance limit.

Every business owner in Ohio should consider carrying some business interruption coverage as it is vital to reopening the business should disaster strike. Speak with your Hitchings Insurance specialist about your business use scenario. Each situation is unique, and our team is dedicated to assembling your specific protection package.

Hitchings Insurance agents are highly knowledgeable about industry-specific liability issues. We enjoy sharing our knowledge and helping our business partners make informed decisions.

To learn more about our ‘people before policies’ commercial insurance mindset – complete and submit a free quote request – or call us at 419-423-9145.