Understanding Business Income Insurance: Protecting Your Cash Flow
Business Income Insurance, also known as Business Interruption Insurance, is a crucial form of coverage that helps companies stay financially stable when operations are disrupted due to unexpected events. While property insurance covers physical damage, business income insurance covers the loss of income that results from being unable to operate normally.
How It Works
If your business suffers a loss due to a fire, natural disaster, theft, or another insured peril that forces you to close temporarily, this insurance compensates for the lost profits and operating expenses (like rent, payroll, and utilities) during the downtime. This means you can keep paying your employees and bills even when your doors are closed.