Nationwide Business Income Coverage: Helping You Stay in Business

This coverage works in conjunction with your property policy. If you have a covered property loss, and your business is forced to close your business income coverage is triggered. For example, if your property policy includes coverage for earthquakes, you would also have coverage for your lost income when an earthquake shuts down your business.

“Unless you are literally working out of your car, it’s a gamble to operate without this kind of insurance,” says Randy Reid, Commercial Sales Agent for Nationwide Insurance. “It pays the bills when your business is interrupted by unexpected events. If your building catches fire, your property insurance should cover the building. But what about the income you would lose while your business is closed? This coverage helps you pay your bills.”

Business income coverage basics

Like property insurance, business income insurance provides coverage in the event of many named perils beyond your control such as fire, wind, hail, vandalism, or damage from vehicles or aircraft that may interrupt your business. Perils typically not covered in a business income policy include flood, earthquake, or glass breakage.

Business interruption insurance can keep the money coming in, which helps you:

• Replace lost net income
• Pay for continuing expenses, such as mortgage, advertising, taxes and payroll
• Pay for relocation expenses and advertising fees if you set up shop at a temporary site

Business income coverage options and endorsements

In addition to basic business income coverage, which is essentially earnings insurance or reimbursement insurance, there are different options and endorsements you can purchase to provide additional coverage.

Extra expense coverage

This endorsement is a form of reimbursement insurance that is usually combined with business income insurance. It covers many extra expenses above and beyond normal operating costs incurred if your company is temporarily shut down. Depending on your type of business, extra expense insurance by itself can sometimes provide sufficient coverage.

Business income for dependant property

This option provides earnings insurance if:

• Your suppliers are unable to produce goods or services on which your business depends
• Your customers are unable to receive your company’s goods or services
• Companies who manufacture products for direct delivery to your customers can no longer fulfill the orders
• A company in your immediate vicinity which is responsible for attracting customers to you (known as a leader location) goes out of business or otherwise can no longer attract business

Utility services time element

This option provides coverage if there is disruption of basic utilities, such as electric, gas or water provided by public or private utility companies that prevents the business from operating, resulting in a loss of income.

Civil Authority

This coverage provides income if your business is forced to closed, or access to your business is prevented, due to an act of civil authority (evacuation or disaster, for example). If a chemical spill were to force an evacuation in your area, resulting in your business closing for a period of time, this endorsement would help you survive the interruption. Another example is the catastrophic event of 9/11; countless businesses went under because the area surrounding the World Trade Center was closed for months.

Contact a Nationwide insurance advisor today and find out how our business income insurance coverage can provide you with peace of mind.