If your business property were destroyed, how long do you think your business could survive? If your business property is destroyed, your sales and production schedules are usually disrupted. And while your business is shut down, you lose income. The good news is, when you’re prepared, it’s a lot easier to recover.

After suffering a loss, with no revenue coming in, ongoing expenses can cripple your business. 

What size and type of companies need business income insurance?

The size of a company is irrelevant. Regardless of your company size, an interruption in your business will result in the cessation of all revenue.

There are various ways to customize coverage and a number of forms available that can help you tailor your insurance to your organization’s specific needs. For example, if there were a fire at an engineering or law office, those facilities would need the insurance proceeds to resume operations immediately following the loss. These needs would include money for additional rental space, computers, equipment — anything that would create a facility where people can get right back to work servicing their customers and generating revenue.

A manufacturing company with processes performed over multiple locations might need to spread a single insurance limit over all of those locations.

Often, organizations such as nonprofits mistakenly believe that they do not have an exposure because they don’t have a loss of profits after an interruption, but they do have continuing expenses and the inability to raise funds. There is a need of some sort for all organizations.