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Ieuter Insurance Group Blog

All You Ever Wanted to Know About Insurance

Business Income Expense Coverage

Business income expense coverage is essential to any business as it protects the business’ income flow and assists in paying bills if, unfortunately, you are hit with a major loss such as a fire. The purpose  is to replace the income that would have been earned by a business if the loss had not occurred.

But do I really need to buy coverage for business income?  Consider the affects if you choose not to purchase this important coverage.  Business Income Coverage protects the lifeblood of the business-- it’s income which in turn affects the business’ ability to pay bills, employees, order supplies, etc.

In the event of a loss, Extra Expense expands the business income coverage to cover extra items like moving to a temporary location or expediting expenses- getting you back in operation faster. Extra Expense is especially important to those businesses that can't afford to shut down for a period of time.  For example, if you needed materials to continue operating, and by delivery vehicle it would take 2 weeks to receive them, extra expense would pick up an expense such as flying the materials in to minimize the time it takes to get the business up and running.