This is the final piece to our 3-part blog on Business Income. This will cover the cost of Business Income Coverage and notable exclusions and endorsements to be wary of.
How much does the coverage cost? As always, this number depends upon several factors:
- How high of a limit do you need?
- How long would your school be closed in the event of a claim?
- What coverage form do you want to go with?
Depending upon these factors, the coverage can be added to your existing policy for a minimal amount (less than $100 for actual loss sustained coverage). It may have to be written on its policy for several thousand dollars.
Are there any exclusions or limitations to be aware of? You need to pay special attention to a few things on the policy to avoid a claim not being paid.
- Utility Services: Most policies have a 72-hour deductible for utility services like electricity, gas, or water loss. The policy can be endorsed to no deductible as you’re willing to pay the premium.
- Loss by Civil Authority: This coverage pays for loss of income by the action of civil authority that prohibits access to the insured’s premises because of physical loss to property at other premises. The coverage is not typically added unless specifically requested.
- Rental Value: Anticipated rental income from a tenant property, tenant’s share of building expenses, and the fair rental value portion of the premises. This is also not included unless specifically requested.
Now while this has not been a comprehensive overview of Business Income Coverage, it is a summary that will hopefully assist you in trying to protect your business.
You can see part 1 here.
Part 2 can be found here.