You’re in business, you’ve created your own job and maybe even created others. Over time, a rhythm has been established, income is coming in regularly and everything is working well. If you manage your business wisely, there’s no reason for that to change.
However, and this will not be news to you, it’s impossible to foresee everything. That’s why you’ve taken out various types of insurance. One protects you in case of fire, another insures your vehicles. Your liability insurance protects you if an incident causes damage to others.
But have you thought about insuring the loss of income? Has this even ever crossed your mind?
When misfortune strikes
Whether you call it business interruption or loss of income, the principle is the same. In the event that a disaster temporarily makes it impossible for your business to continue its operations, how would you protect yourself? In case of a fire, or a flood, that would damage your machinery or cause the loss of your raw material, for example.
For an indefinite period of time, your business would not be able to generate income, or there would be a significant decrease in revenue. But expenses wouldn’t go away. And you would have to support yourself as well, while coping with the situation. Loss of income insurance provides an allowance in such an event.
Insuring loss of income: protecting your assets
Please note that this insurance does not cover the replacement of damaged equipment or raw materials.
On the other hand, it can cover, in whole or in part, your operating losses or mandatory expenses. Depending on your situation, in the event of a claim, it can help you take a step back while you sort things out. In addition, insuring the loss of income allows you to protect your company’s reputation with your suppliers and creditors.
Our brokers can advise you wisely when selecting insurance. Working with you, they will determine the type of coverage you need, and answer all your questions.