ARI Blog: Article

Restoration Insurance Tips: Is it Covered by Auto or General Liability?


Business Income (or business interruption insurance) protects restoration contractors from the loss of income when their facility suffers a disaster that forces it to close. While a property insurance policy covers the physical damage or loss to a restoration contractor’s property, a business income insurance policy will cover the business for lost profits and expense payments.

This type of policy is usually purchased in conjunction with a property insurance policy. An important note is that a business income policy will only pay if the claim is one that is covered by the property policy.

A business income policy can include coverage for the following:Profits- Profits that would have been earned.Fixed Costs- Operating expenses and other ongoing costs.Temporary Location- Some policies provide extra expense coverage to help with moving to and operating from a temporary storage location.Extra Expenses- Reimbursement for additional expenses (beyond normal costs) a business incurs to continue operations.

All business income policies will include a specified time period for which the insurance company will provide coverage. Policies may provide coverage for as little as 3 months while some include coverage for up to 2 years.

If you have questions of whether your restoration company should purchase a business income policy, we recommend you speak with one of our experts agents. We can evaluate your company’s operations to determine if a business income policy is right for your company. give our office a call.

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