Business Income Coverage
What would your business do if you suddenly had to close your doors temporarily? Life happens, and for many hospitality businesses in New York, temporary closures are often a fact of life. Having the right insurance in place in such a situation can mean the difference between reopening and being forced to close because you can't cover costs while you are unable to serve customers.
What Is Business Income Coverage?
Business income coverage protects you in the event your company has to close for a temporary period of time as a result of a covered loss, such as a physical loss. This coverage helps you pay for overhead and operating expenses while you are closed, such as rent, payroll and other costs. It also helps you replace the income you would have secured had your business not been closed. The coverage further pays for some costs associated with a temporary business site, including marketing costs and relocation bills.
Together with your business property policy, business income coverage helps protect you if your business is interrupted by damage from attacks, storms, fire and other covered causes. This coverage usually does not cover glass damage, earthquakes or flooding.
Do I Need Loss of Rent Insurance in New York?
If you could not easily absorb the costs of keeping your business running if you suddenly had to close your doors, you need business income coverage. If you have a restaurant, bed and breakfast or any hospitality business, you need to pay for costs even if you are temporarily closed and not bringing in revenue. You may need to pay employees to keep them, and you may need to continue to pay for utilities or your business property costs, including mortgages and debts. Business income coverage ensures you are not left with these costs yourself.
Loss of business income insurance is especially important if you run a business where your physical location is needed to help you earn money. If you cannot simply set up shop quickly elsewhere, you need this coverage.
If your business rents property to others, you may also want a related coverage known as loss of rent insurance. This covers the income you would receive from tenants if damage meant tenants could not stay in your property and continue to pay rent. For instance, if your motel rents long-term rooms to some guests, loss of income coverage would cover the income if fire or other covered causes of loss meant that you lost business or rental income for some time.
Where Do I Find Business Income Insurance Coverage in New York?
If you would like to add this essential coverage to your policy, contact Kokkoris Insurance Services for an estimate today. You can also give us a call at 718-728-0606 if you have questions or need support finding the right insurance for you. Our professional team is experienced and committed to helping you find the right coverage at a price that fits your budget.
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