Illinois Business Income Insurance

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When running a business, you’ve got to be prepared for all kinds of unforeseen disasters, and how those can cause even more catastrophes. Just one major incident could cause your business to have to temporarily suspend operations, leading to a loss of income. Fortunately business income insurance exists for just this reason.

Even better, an Illinois independent insurance agent can help you find the right kind of business income insurance for your business. They’ll get you equipped with the proper coverage long before you ever need to use it. But before we jump too far ahead, here’s a closer look at this important coverage.

What Is Business Income Insurance?

Business income insurance is one aspect of Illinois business insurance that’s meant to safeguard your company’s income and wages during a temporary closure. Say your business gets hit by a devastating tornado, and the property damage is so extensive that you have to close for several months to make repairs. Business income coverage would help your business during this time by compensating for lost revenue that you would’ve made had your business remained open.

What Does Business Income Insurance Cover in Illinois?

Business income coverage, which is also sometimes called business interruption insurance, is essential for employers located in Illinois, as well as everywhere else. Since you can never predict an unexpected temporary closure, it’s imperative to have backup in place from the very start.

Business income insurance typically covers the following:

  • Lost revenue: Coverage reimburses businesses for revenue lost during suspended operations.
  • Employee wages: Coverage also allows your company to keep employees paid during suspended operations, so you don’t lose your team after a disaster that causes a temporary closure.
  • Temporary relocation expenses: Another feature of coverage is that it covers extra expenses necessary to operate your business out of a temporary location.

An Illinois independent insurance agent can further explain the importance of business income coverage and help you find a policy that meets your needs.

What Doesn’t Business Income Insurance Cover in Illinois?

While business income insurance provides generous, important protection for business owners in Illinois, it also comes with its own set of exclusions. According to insurance expert Paul Martin, exclusions for business interruption coverage often follow exclusions for your business insurance in general. These exclusions are for damage and closures due to the following:

  • War or nuclear fallout
  • Employee dishonesty
  • Certain explosions
  •  Floods or earthquakes
  • Communicable diseases

If you’re concerned about coverage exclusions under business interruption coverage, an Illinois independent insurance agent can help you find additional policies where possible to fill in any gaps.

Business Insurance Stats

When considering the importance of business income insurance, it’s helpful to know what kinds of claims all businesses file regularly. Check out some of the most common and costly claims for all businesses below.

Top 10 Property and Liability Claims

Some of the top claims filed by all businesses are for incidences of water and freezing damage, fire, and wind and hail damage. Disasters like these could force a business to temporarily suspend operations during recovery, and  create a need for business interruption coverage. An Illinois independent insurance agent can provide you with several other common business interruption claim examples.

Business Income vs. Business Interruption Insurance and Extra Expense Coverage

When hunting for the right coverage for your business, all the different names of types of insurance  can get confusing. You may hear the terms business income coverage, business interruption insurance, and extra expenses coverage used, even interchangeably. But Martin assures us that they’re all essentially the same thing, but the names may vary based on the insurance company. Regardless of the name, an Illinois independent insurance agent can get you equipped.

How Much Does Business Income Insurance Cost?

The cost of your business income insurance will be just one factor in the cost of your overall business insurance policy. Business income insurance can cost an average of $40-$130 per month, and $500-$1,500 per year, depending on several different aspects of your business.

Factors influencing the cost of your business income coverage can include:

  • Your business’s exact location
  • Your business’s size
  • Your business’s annual revenue
  • The number of employees you have
  • The age of your business’s property
  • The risk level of your business

An Illinois independent insurance agent can further explain factors influencing the cost of your business interruption coverage, as well as your business insurance policy overall. They can also help you find any discounts you may qualify for on coverage.

Here’s How an Illinois Independent Insurance Agent Can Help

When it comes to protecting business owners against lost revenue and wages during temporary closures and all other disasters, no one’s better equipped to help than an independent insurance agent. Illinois independent insurance agents search through multiple carriers to find providers who specialize in business insurance and business income coverage, deliver quotes from several sources, and help you walk through them all to find the best blend of coverage and cost.

Author | Chris Lacagnina

Article Reviewed by | Paul Martin

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