Business Income Insurance / BII
What is Business Income Coverage?
Business income insurance (also known as Business Interruption Insurance or BII) reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because physical damage from a covered peril makes it impossible to carry out your normal business operations.
Business Income coverage is generally written with your commercial property insurance or business owners’ insurance policy. It can also be included in a customized commercial insurance plan.
Shopping for Business Income Insurance?
Brunswick Companies' team of commercial insurance specialists provides the expertise to help you identify your exposures and simplify your insurance purchase, providing the information you need to make an informed decision. We will work with you one-on-one to identify the business income coverage plan that suits your specific needs.
Comparing Business Income Insurance Policies
Brunswick Companies offers business income coverage from wide range of top ranked insurers. All of the insurers we represent have received ratings of A- (excellent) or better from A.M. Best Company.
We specialize in insurance risk management. This focus makes us uniquely qualified to assist you in evaluating your exposures and the level of protection required to meet your goals.
We can evaluate, negotiate and enforce your Business Income Insurance and other property insurance policies. Our clients range from Fortune 500 companies to smaller corporations, as well as boards of directors seeking independent assistance with their own policies.
What Sorts of Incidents Are Covered By Loss of Income Insurance?
Generally, you’ll be covered for income losses arising from direct physical damage by a covered peril to your business. If fire or other damage by a covered peril results in your customers being unable to reach you, you are probably covered. This coverage does not provide for loss of business income due to damaged contractors equipment or any other inland marine coverage.
When Is Business Income Insurance Recommended?
If the location of your business is critical to generating revenue, then BII is vital to your business. This is often the case for most businesses (Retail, Restaurant, Property Owner/Manager, Manufacturers, and Distributor operations), but may not be as important for a service firm that does most of its business off site. For example, if a fire at your retail store closed the site for repairs, business interruption insurance would pay you out a percentage of the income you would typically bring in during the time that your business is closed.
What If My Business Income Fluctuates Seasonally?
For a retail or hospitality operation, business interruption insurance often includes a clause that allows you to increase the maximum benefit during specific periods of the year. Generally, those periods include the weeks before the holidays, but that may vary depending upon your business and specific arrangements with your insurer.
Customize Your Business Income Insurance Coverages
Business Income Insurance policies from different insurers vary widely. Some plans include additional coverages for other types of income loss that is not caused directly by damage to your own property, sometimes at an additional premium. With over 35 years of commercial insurance experience, we have the know-how and industry contacts to match your needs with the plan that best suits your risk management and financial goals.
We can customize your business income coverage to protect against additional losses, including:
- Extra Expense Insurance. Business interruption insurance will extend/include extra expenses that may be necessary to resume doing business after property damage. Extra Expense Coverage pays for the additional costs required to get you back in business as soon as possible, without regard to the income to be generated by the return to business.
This includes, but is not limited to:
- transportation fees when necessary to use next-day service instead of normal shipping schedules
- any surcharge to put a rush on a purchase order
- special set-up fees charged for a manufacturing order
- the cost of renting alternate facilities
- rental of equipment
- additional expense for replacement of lost inventory needed to fulfill standing orders.
Extra expense coverage should be considered in cases where considerable extra expenses will be needed in order for a business to resume operations, regardless of the circumstances.
- Contingent/Dependent Business Interruption coverage protects against losses incurred when another business suffers a covered loss, if the operation of your business is dependent on theirs. If loss or damage prevents a supplier from filling your orders, for instance, and that prevention incurs losses for your business, you may be covered under a contingent business operation clause.
- Leasehold Interest Coverage is recommended when you have a more favorable long-term lease than the current rate in the area. It pays the difference between the prevailing rent levels and the existing rent being paid following the cancellation of the lease due to direct damage to the building by a covered cause of loss. It covers a variety of up-front amortized costs in addition to the rental or lease difference. The coverage limit decreases based on the length of the lease.
- Utility / Services interruption coverage can protect you if your business is affected by a loss of services, such as electrical services, telephone services, refrigeration and air conditioning systems, sewage and other services that are vital to your business operation. These losses might include such things as the cost of spoiled food in a restaurant or supermarket because of equipment failure due to an interruption of electrical service, or loss of income because of phone service disruption.
- Interruption by Civil or Military Authority protects against financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises. While most insurance coverage does not include loss because of an act of war, you may be covered for losses incurred, for instance, if your business is shut down during a crime investigation, or because of fire or another disaster in a building adjacent or nearby.
- Ingress / Egress Coverage protects you from financial losses if access to your property is impaired by any reason. This may include, for instance, the closing of bridges, tunnels, airports or subways that prevents people from traveling to your place of business.
Manufacturing operations that are dependent on anyone else for a significant part of their business should consider this coverage. Businesses located in shopping centers or close to major amusement areas may want to consider this coverage in case the draw is forced to suspend operations for a time due to an insured cause of loss.
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