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What is Business Income Insurance?

What is Business Income Insurance?

So what about business income Insurance?

You’ve been searching for business income insurance and the search results are in.

Let’s be real business insurance coverage is the last thing on our minds but it’s

something we still think about in sometimes even hope we have right hoping

it’s pretty scary when it could crush our hard work and consistent grind all it

takes is a few seconds and.

Changes for us.

Let’s be the next success story.

Not the I wish I would have story.

I went straight to the source on the search and talk to an expert on Rob bone with patriotic Insurance Group first though.

Let’s drill down into the basics.

What is business insurance?

And what does business insurance cover?

This is the stress.

Usually the first the first time a business owner is requested for business


It’s almost landlord.

They’re looking for a general liability policy.

The issue is the instance.

His policy has a lot more coverages that are a lot more important to the client

than they are to the landlord.

And that’s what we do kind of drill down into those individual coverages and how

they work and how they protect the ultimate policy able to the biggest things

is business personal property worked with called vêtements improvements.

So if your landlord upgrades this case, I’ll use a restaurant at some example the

carpet in the walls.

They might have paid for it, but you have to insure it.

And then business personal property is anything that’s not attached to that

structure tables chairs computers anything like that?

That’s the important part of insurance because if God forbid you have fire or

flood the landlord and the landlord something care that you are and people

don’t focus on that because again the back focusing on what the landlord is acquiring

second coverage, which I always preach is all business income what is business

income insurance and how can it save your business when you need it the most.

Business income simply if your business cannot run and there are limitation

periods of time frames.

Typically in most policies business income will now generate a revenue stream for


So you are cash flow neutral relatively cash flow neutral as you know, they see if

you have to fix them stuff.

Maybe you have to fly out your restaurant for example, and that’s to me is the most

important part of these policies because if you’re down for four to six weeks and

have no Revenue, Coming into a business you might be losing your important like

going bankrupt is a lot of things that can go wrong.

So it’s very important that the client understands the business income good

policies will have a time frame around.

It bad policies will have a dollar lemon and I prefer to have the conference you

see it’s one year and it’s kind of acting and obviously your books and Records.

Those are the two big parts of these policies that people would focus on.

Best examples of restaurant the reason I use the word with the reason I use

restaurants as my example is the place tend to be relatively transient have quite

a bit of charm in these employees.

And if you have someone who’s working at five dollars an hour depending on your

state and is living on the tips and the restaurants close.

That person is typically going to leave and go to work in another restaurant.

So what you can do at that point assuming you are recording your tips and your

Revenue I should do a wink-wink nudge-nudge on that one.

We will provide that Revenue source to you as the policyholder and that can be pushed

out to your employees.

So now with this is income your hard down we will fix everything in the restaurant

without paying your employees.

So when you open up in four six eight weeks you now have your employees are


If you have a fire or a flood and then all of a sudden you better hire 15 new people

in your restaurant your kind of starting from scratch.

So that’s the best way to look at it from a restaurant but it applies to any

business and it’s important to keep is your biggest expensive difficult your

payroll and that we can we can provide funding for that.

So you can keep the business going on a cash flow basis while you really are not


How much is business income Insurance have to cost and how much.

I actually need this is income.

Typically if you’re dealing with a forms based policy, which basically means is a

lot of other coverages within the policy as you pay for it.

If you can’t there’s no extra cost to it you what you need to understand.

Is there a Dollar limit which you can always put into the policy or whether

there’s a time limit.

So you have to understand who wants six months some policies.

If you want an extra six months where you want to increase it above what the form

says that will cost you but that.

Usually the form is pretty close.

There’s the the policy you have to be really concerned about in my market or the

XS so plus policies that aren’t forms based in order Chinese menu approach and

they’ll have no coverage.

So you need to add all these different coverages.

I typically don’t sell those unless I have to and we have a process we go through

some typically.

I’m in the I’ll be admitted market.

So all of that coverage is in there and as part of the policy endorsements, it’s very


New restaurant because they really are going off with a business plan and that’s

really an estimate or a wild guess but if they have a restaurant, that’s establish.

I just asked him.

What kind of Revenue do you bring it on a monthly basis obviously restaurants can be


So we want to go with a higher.


Sommer base restaurant, we want to go with those months.

So I asked him for the 12-month revenues and I haven’t tried to help me break it

down by month.

And then we look at the three months that are probably the highest and we tend to

multiply by 4.

If we have to add additional business income coverage.

It’s very very inexpensive very few people file claims in general.

So the expense of the policy is more on the business income Center for on the

general liability side.

That’s biggest easy a million dollars right there where the business income is

not going anywhere near that level.

So that’s the process.

I typically use if it’s a new startup.

I’ll tend to take the business plan and exaggerated a little because again, the

cost is is really not that much and at that’s me is the best of the biggest part

of his policies what you didn’t know about business insurance and is I think what

people don’t understand about business insurance is the additional endorsements

that we kind of went through people tend to be told.

I don’t mind what I needed.

I needed a general liability policy.

I need to be named as additional in short.

So client comes in and says hey, I need a Certificate of Insurance.

That’s not how Insurance works.

You need a policy to create the certificate.

But what I try to do is go through those different coverages.

I mean, there’s coverages in there for your sign for your Landscaping out front.

I always joke, there’s a discovered for Fine Arts.

And most of these that is quarter of a million dollars.

Most people don’t have a court of law.

College of fine art but if there are additional coverages that will go through

line by line to let them know that you know, there’s a lot of little things that

can go wrong.

You could have to call the fire department.

We charge that will be completely covered you might have to recharge your system in

the back by the kitchen the Ansel system that will also be covered.

So it’s a lot of different coverages.

So we go through and explain what each coverages how it works because at the end

of the day if you have a bad fire, that’s.

We can fix all that but if you know your sign gets destroyed in this $4,000 and

your Ansel system has a leak in got to fix it things like that, you know, they start

running a couple thousand dollars a month that can put a big damper on your onion.

Net income.


Remember we just talked about a few important business coverages, but there

are a lot more that you need to consider when running your business as you continue

to grow your business.

Your insurance needs will change and some other coverages to consider our commercial

auto insurance commercial.

Briella liability insurance and commercial crime insurance.

You can find more about these different coverages on our Channel take the expert

word for it.

It’s important to speak with a licensed insurance agent and expert on bright

to find out what business income insurance is best for you.

You can find more on Rob and description below and check out our channel for other

helpful tips on business insurance and end your search with bright today.

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