Here’s a brief explanation:

• Business income coverage is designed to help keep you in business following a loss or disaster.
• Your coverage helps replace income lost due to a fire, severe weather or other covered event. 
• It can help you meet operating expenses while the company is closed for repairs or rebuilding.
• You can select coverage for periods up to three years.

Q: Question Business income insurance sounds like a good idea, but I really don’t know enough about it to make a decision. Why would I want it, and how does it help me protect my income?

Mickey Manley II is a Farmers Insurance^® agent in Omaha, Nebraska. He discusses how business income coverage can help you.

A: Answer We all know that accidents, events or disasters can strike at any time and destroy physical property, including your place of business and everything inside. Even when you have enough property coverage, events like fires and severe weather can threaten your company if, for example, your business is closed for months while your property is repaired or rebuilt. How would you pay the bills with no money coming in?

When you have business income coverage, your policy helps replace the income lost while your company is closed. Depending on the amount of coverage you choose, this benefit can help you keep up with payroll, taxes and other operating expenses until you reopen for business.

You select the term of income coverage that works best for your needs. Your policy can cover up to 100 percent of expected income for a period of 12 months, 18 months, or more.