Business Insurance Coverage: Are You Ready for a Fire?

We’ve all been reading about (and horrified by) the terrible fires in Colorado and the many homes that have been destroyed.  It got me thinking about what fires do to business and how losing your business could be even more devastating than losing your home.

business insurance coverageHow can that be?, you ask.  When your home burns your insurance company, if your Homeowners Insurance is written correctly, should step in and immediately help you restore your property as well as help you with your living expenses so that you can live in a hotel or rent an apartment while you try and get your life rebuilt.

But when your business is destroyed by fire you lose your source of income.  Your Business Insurance Coverage should provide coverage for “Loss of Business Income” but some policies don’t and when they do the coverage can be quite complicated. 

Since after a fire is NOT the time to find out you are not adequately covered here are a few items to discuss with your insurance broker:

1) Is Loss of Business Income included with your property coverage?

2) What is the limit and how long will they pay out on the coverage?

3) What is the “waiting period” before the coverage will kick in?

4) What records are needed to show how much income you’ve lost?

Understanding your Business Insurance Coverage will go a long way to helping you if you ever have a loss.

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