Business Owners policies traditionally referred to as “BOP’s” have been around since 1976 and were significantly revised in 1987. These policy packages include both Property and Liability along with many other enhanced protections.

The BOP has continued to evolve with many carriers designing their products to simplify the risk management process of a company; thus saving time and money.

One of these coverages is Business Income, also known as “Loss of Income”. Business Income is an essential part of every business plan. A majority of businesses that shut their doors following a severe property loss never reopen them. Disasters happen, businesses temporarily close and revenues dry up but the expenses continue…Business Income is a blueprint for survival.

Business Income protection under the BOP policy is normally included, for the Actual Loss Sustained (up to 12 months). Things to consider:

1)      Ordinary Payroll

2)      Securing permits can take up to 3 months

3)      Reconstruction can take up 12 months

4)      Replacement of machinery and equipment can take up to 18 months