Business Income Insurance
The world is filled with perils. Some of which can render a business inoperable for long periods of time. This is when business income insurance is critical for business owners. Otterstedt Insurance Agency understands the unique perils facing New Jersey businesses and offers a wide range of business insurance products, including business income insurance, to help protect area businesses against those perils.
What Types of Disasters Does Business Income Service Assist With?
The key to business income insurance is to understand that the protection usually doesn’t kick in until the business has been rendered inoperable for up to 72 hours. That is, the waiting period for business income coverage to begin can be anywhere from 0 to 72 hours, and this can result in a great deal of lost income, depending on the type of business you are in.
That means businesses will need to cover their own losses for up to that amount of time. That’s the average storm damage that leaves limbs down and roads impassable for a day or two – perhaps even the typical blizzard that New Jersey residents must sometimes dig out from under.
Business income coverage steps in for longer disasters that require extensive cleanup, repair, or even rebuilding. Things like:
- Extensive straight-line wind damage
- A tree falling on the building
- Severe hail damage
These all represent the types of damage that are covered by a typical business income insurance policy.
What Do Business Income Policies Cover?
Understanding the basics of business income coverage will help you make more informed decisions about whether or not your business needs this coverage and how much coverage your business needs. These are a few of the things that are protected through this coverage.
- Compensation for lost income resulting from an inability to operate in the current premises from a covered event. The lost income amount paid to you is based on the net income of the business based on business financial records.
- Payments for continuing business expenses such as mortgages, advertising, vendors, creditors, utilities, taxes, and employee salaries.
- Payments for relocation expenses and advertising fees if damage is sufficient to require you to relocate your business temporarily.
The key is to purchase adequate coverage to meet reasonably long-term interruption scenarios without breaking the insurance budget. The helpful agents at Otterstedt Insurance Agency can help you decide on an amount that is appropriate for the type of income and business involved.
How Much Business Income Coverage do You Need?
There are many mitigating factors that go into determining the precise amount your business needs. These factors include the likelihood of a covered loss occurring. While New Jersey might not be a haven of tornadic activity, they’re not unheard of. Wildfires might not be much of a concern, but there are enough standard fires to worry about.
At the same time there are risks of tropical weather systems, blizzards, and some frightful thunderstorms that can all cause damage to businesses that may put you out of business for weeks if not months. At Otterstedt Insurance Agency, our helpful agents can help you decide how much coverage you need in order to provide the greatest possible value in this type of business income protection.
Why Choose Otterstedt Insurance Agency for Your Business Income Insurance?
Otterstedt Insurance Agency has operated in the state of New Jersey since 1919. We understand the people, the businesses, and the place. We know the perils that New Jersey businesses face on a daily and seasonal basis. We understand the insurance products you need in order to maximize your protection while minimizing your risks.