Imagine this: a tree is knocked over during a winter storm and falls onto a set of power lines in front of your business. This incident sparks a fire that damages your building, along with your two commercial vehicles parked out front. You’re forced to close for a few months in order to rebuild your office. Could your business survive without the income? Well, here’s why you need business income insurance.

For a lot of businesses, this exact scenario can be make or break. If your business suffers a major claim and is unable to generate revenue, what would you do? If you have a Business Owners Package, you would be in some luck. This insurance package combines major property and liability risk into one comprehensive policy. It also provides loss of income protection, also known as business income coverage.

Many small business owners don’t realize that this specific coverage is a part of their Business Owners Package, but it can be more important than property insurance if your business is ever in the position of being unable to operate for an extended period. Here are some details that you should know:

Will Business Income Insurance help my business?

Business Income Insurance is helpful for any type of business, from restaurants to retail stores to professional service providers. Think of it this way: if your business had to shut down for a few months, would you be able to continue covering all your business expenses yourself? If said the answer is no, then you would benefit from this coverage. While this type of insurance is helpful for any business, it can be particularly useful for retailers and healthcare businesses.

What does Business Income Insurance cover?

While your Commercial Property Policy will help cover the costs of repairing damages to the structure of your business based on the specifics of your policy, Business Income Insurance provides extra relief to help you get through the period of time when your business is unable to operate. First, this coverage can compensate you for lost income while your business is closed. The income value is based on financial records, and will take into account any recent increases or changes in revenue.

Business Income Insurance will also help you pay employees until you can reopen and may help cover recurring operating expenses like your gas and electric bills or even your mortgage. Depending on the specifics of your policy, Business Income Insurance might also help cover the costs of finding a temporary location for your business until your primary office is able to open.

Is there a limit to how long Business Income Insurance will apply?

This depends on the specifics of your insurance policy, however, in general, business income insurance should help cover expenses for your business for up to 12-18 months. You should check with your insurance agent to understand the coverage you have for your individual business.

How do you get Business Income Insurance?

Talk to your independent insurance agent today to learn more about this extremely valuable business insurance. Business Income Insurance is generally bundled as a part of your business owners package, along with property and liability insurance. If you don’t have a business owners package however, it can definitely be added as a part of your commercial insurance package.

If you’re worried about what you would do if your business was forced to close for an extended period of time, give HIG a call today at 508.676.5949 or visit our website at Our team of experienced agents will help create a business owners insurance package that fits your unique needs so you can spend less time worrying, and more time running and growing your business.