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 property policy covers the claim.

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 period for which the insurance company will provide coverage. Policies may provide coverage for as little as three months, while some include coverage for up to 2 years.

If you have questions about whether your restoration company should purchase a business income policy, we recommend you speak with one of our expert 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.