05/27/2020
I have seen many people talking about this.
Business income coverage, more commonly known as business interruption insurance, is supplemental to commercial property insurance. It is a separate form. It has to be added to a policy. It is an endorsement.
ISO (Insurance Services Office) writes commercial property on 3 forms. Basic, broad, and special. All which specifically exclude virus’s and governmental action.
In order for business income coverage to “kick in” the business has to have suffered a loss of income due to physical damage to their building or premises rented to them, causing the business to have to shut their doors to the public or stop normal operations. Therefore, resulting in a loss of income.
This is a prime example as to why you need an agent that is educated in commercial insurance. One who knows the base coverages as well as the endorsement’s functions and values. Just because any licensed agent can write it, doesn’t mean they should.
Many businesses across America have purchased business or property insurance with business interruption or business income coverage. These policies are designed to help cover any income that may be lost as a result of adverse events, including pandemics.
