Hi. This is Tom with the Hummel Group, Business Risk Advisor. We're gonna talk about the topic of business income and extra expense.

Have you ever thought about the impact that a fire or other damage to your building would do to your business?

Of course, the importance of building, contents, inventory, machinery, or equipment coverage is likely the initial thought. But what about the impact on production, payroll, ongoing expenditures and other ancillary costs that impact your cash flow?

Business income, including extra expense, is often an afterthought coverage, that business owners should strongly consider procuring to protect in the event of a property loss.

Let's explore a few reasons how this coverage can be helpful to sustain the business during the period of restoration after a property loss.

Business income coverage protects your net profitability. So your building is being reconstructed or repaired, and your business cannot operate until the project is complete. This will most certainly impact your ability to operate. The coverage is designed to replace your lost net profitability for a period of time. Anywhere from twelve to thirty six months or even longer until the space can be reoccupied and operating as it was prior to the loss.

Extra expense coverage steps in to support the business's ongoing expenses that continue in spite of the business is not operating, whether partially or completely until the business is back to operating the way that it was prior to the loss. This includes payroll expense, taxes, insurance premiums, utilities, and even moving equipment and inventory to and from a temporary location to operate or store.

We often refer to this as keep me in business coverage until you're back in business. The coverage often has a time period deductible of twenty four hours is only activated by a physical loss of property and must be included on the property insurance policy to respond.

If you're curious if this coverage is present in your property insurance policy, feel free to contact us today to review and discuss how this risk transfer tool can help give you peace of mind.