When a fire destroyed a fifty unit apartment complex, the owners found themselves in a tough situation. The owners had insurance to cover the repairs and replacement of all the damaged units, and because the agent had done his job the owners had business income, or loss of rents insurance.
Business Income coverage, is a property coverage that is designed to pay the loss of income (rent is this case) following a total or partial shutdown of a business. Business Income insurance is designed to replicate the insured's income stream and covers expenses as if no loss had occurred.
The 50 families that no longer had a place to live won’t pay rent until they have moved back into their repaired units. Chances are, many will move on to other housing and won’t come back. However, as owners, you still have expenses, including a mortgage that will need to be paid. There can be three major parts to Business Income insurance:
We like to ask the following questions to help us understand your risks and provide realistic solutions:
Our team of insurance professionals has the knowledge and experience to help you identify your risks and create cost effective solutions.
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