Loss Of Business Income Insurance Coverage

In the event of a large loss, it is most likely a business will not be able to do daily operations. Sometimes a business is shut down due to a claim. This can be a couple of days, of even sometimes up to a year. Sometimes a loss can result from another loss. This is called an indirect loss. Such indirect loss could be losing business income from a big loss.  Since your business can no longer operate, it is only natural for this to happen.

What is business income loss insurance?

This coverage supplements your business income from an indirect loss, when a direct loss occurs and effects your revenue. This coverage is usually good for up to 12 months of lost income. Business income can be considered any type of revenue from daily operations. The insurance company has to indemnify all losses, but no profit can be gained from the insurance company. This unless it is apart of daily operations income.

Why is this so important to have on my insurance policy?

Incidents that result in business losses, can be unforeseen. If your operations are stopped due to an insurance loss, it is a must you  protect the businesses income. This simply can be done, by buying a business owners policy, that has loss of business income, included in it. Always make sure that this coverage is good for 1 full year.

Why Buying Insurance Online is A Bad Idea

It seems like very day, we see tons of TV ads for auto insurance companies. This either can involve a cartoon, a little lizard, or even a perky little brunette. All of them advertise how you can buy a policy online. They advertise how you can get discounts for buying online. They advertise it like gold and glitter. In this blog, I am gonna go past all the excitement about buying a policy online, and actually tell you why its a bad idea.

  • The information they ask can be very hard to understand. Most of the time consumers enter in information incorrectly, which will give you an inaccurate quote.
  • Most companies, shows the lowest price. This usually means the lowest coverages.
  • Most quotes you get off the internet, are the bare minimum liability coverages. This is bad, because if you get in a bad enough accident, you personal assets could be at stake.
  • Most companies don’t include coverages such as uninsured motorists property damage, and also uninsured or under insured motorists coverage. With a lot of drivers uninsured or under insured, this coverage is a must.
  • If you have a newer car and has a lien or lease on it and its needs comp and collision coverage, a computer can’t understand this.
  • An online quoting system might not know if towing and rental car reimbursement is something you should or shouldn’t have on your policy.
  • Most consumers don’t understand what some coverages mean and what it does. When a consumer doesn’t understand a coverage, they don’t buy it. This could be costly, because a consumer might need it.

I could continue on with many points, but in conclusion, a computer can’t think, and counsel you into the right policy. Only a human can. When it comes to insurance, every person is different in needs. Only an experienced  broker like us, can give you advice and steer you in the right direction. A computer can’t give you advice on how much coverage you should buy, if its ideal to carry a 1000 dollar deductible or a 500 dollar deductible. It can”t answer questions such as, what if I drive my friends car, will my policy follow me to that policy?

Please feel free to leave a comment. We can write insurance in 45 states.

Why Buy Discretionary Items When You Should Buy Insurance?

So why buy discretionary items such as books, jewelry, silverware, designer rugs or decorative art when you should buy insurance.  Let the priorities fall where they may, but one needs insurance before purchasing any discretionary products.  Being a new insurance agent,  I now understand why insurance is so important.  For those owning automobiles, having insurance provides the necessary support if involved in an accident.  For those owning a home, only the homeowner can attest to the importance of having insurance if there should be a fire.  For those owning a boat, a condo, a motorcycle or a farm, only they can attest to the importance of insurance coverage and protection.

So does a necklace or ring give us any protection if an unexpected event should occur?  Does a book give us the financial risk coverage if a fire should break out?  Does a painting on the wall support and pay for the wall of which it is hanging if a house is destroyed because of fire?  Only property and casualty insurance coverage protects one from those risks and unexpected events taking place on a daily basis.

So when you decide to purchase a product,  make sure you purchase insurance before you buy any discretionary items.  This way you will have your priorities in the right order.

Karen W. Schneider

Denvers Insurance

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