When a fire destroyed a fifty-unit apartment complex, the owners found themselves in a tough situation. The owners had insurance to cover the repairs and replacement of all the damaged units, and because the agent had done his job the owners had business income or loss of rents insurance.
Business Income coverage, is a property coverage that is designed to pay the loss of income (rent is this case) following a total or partial shutdown of a business. Business Income is designed to replicate the insured’s income stream and covers expenses as if no loss had occurred.
The 50 families that no longer had a place to live won’t pay rent until they have moved back into their repaired units. Chances are, many will move on to other housing and won’t come back. However, as owners, you still have expenses, including a mortgage that will need to be paid. There can be three major parts to Business Income insurance:
We like to ask the following questions to help us understand your risks and provide realistic solutions:
Our team of insurance professionals has the knowledge and experience to help you identify your risks and create cost effective solutions.
It may not make sense for every owner or officer to consider this; it should be reviewed and considered periodically. Call our office today. Let one of our construction insurance specialist’s help you determine if this is an effective risk transfer tool.
DCInsurers Mountain Brokers is the Denver insurance agency you can trust, so contact us today so we can show you how we’ve become Denver Colorado’s premier insurance agency.