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Business Income Insurance

Are You Prepared if Disaster Strikes at Your Business?

For More Information Please Contact:

 Beverly Zolnowski



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A plastic bottle manufacturing facility burned to the ground due to a power surge. Even though the company had a second facility, it didn’t have the right equipment necessary to continue manufacturing its bottles. As a result, it needed to rush order new equipment to fulfill orders.

The manufacturer incurred $1.5 million in extra expenses.*

While disasters like these happen everyday to businesses large and small, the good news is that there is a way to protect yourself and your company should it happen to you. It’s called Business Income & Extra Expense Insurance and with it, you can offset the costs you’d incur if a disaster interrupted your normal business practices.

What Does It Cover?

Business Income & Extra Expense Insurance is designed specifically to help you handle emergencies and re-establish your business with minimum impact on income normally generated. In addition, insurance dollars can be directed where they are needed most. For instance, they can
be used to cover the costs of:

• Re-building after a flood or fire and replacing damaged equipment and lost inventory.
• Purchasing a critical piece of equipment to replace one that breaks down.
• Paying for continuing expenses, such as employee salaries, even during a period of little or no income due to a disaster.
• Replacing or restoring lost information or records.
• Accommodating a loss of net profit.

Also, if you save dollars in one area of coverage, many times, you can use that savings in other areas.

What’s the Right Amount?

When deciding on an adequate amount of coverage, some questions you should consider include:

• What were your net profit and total operating expenses for the past 12 months?
• What about expected profits and expenses for the next 12 months?
• In a worst-case-scenario, like a fire, how long would you be out of business?
• How much income would you need to maintain operations and pay for continuing and extra expenses?

If you’re still uncertain about coverage amounts, contact us and we can work with you to determine an appropriate amount for your business.

*Source: Chubb Group of Insurance Companies

This information is advisory in nature. No liability is assumed by reason of the information in this document.

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