Loss of income insurance

What is loss of income insurance?

Loss of income insurance compensates you for lost income while your business operations have been temporarily interrupted due to an insured loss.

Types of coverage

You can opt to get coverage that protects you from a broad set of risks with some specific exclusions. Or you can get coverage for specific events, such as fire, theft or vandalism. Other types of specific coverage you can choose include:

Gross Earnings Coverage

This coverage pays only until your insured property is replaced or repaired, even if you haven’t regained your previous earning level.

Profits Form Policy

This coverage continues to pay benefits until your business returns to its normal, pre-interruption level, up to your policy limits.

Extra Expense Coverage

This coverage is designed for businesses that need to keep running while they’re recovering from damage. It covers extra expenses, such as re-locating to another building temporarily or outsourcing work.

Rent or Rental Value Coverage

This coverage pays for loss of rental income until repairs are completed or the property has been replaced.

Actual Loss of Income Coverage

This coverage is similar to the Profits Form Policy, but it pays up to the actual loss sustained. For example, if your business property policy insures you for fire, and that fire is damaging enough that you can’t operate your business, you’ll be covered for the loss of gross profits and extra expenses, including rental value.