In talking with our clients, no coverage is less discussed, but more important than ‘non-physical damage business income’. Why is this important? What makes it essential? Two key issues.

  1. Your business is driven by intangible assets. Your service contracts, your intellectual property.
  2. After a loss, the most common reason for businesses failing is an inability to handle the cash flow disruption as income is interrupted or reduced.

When business income is impacted by events other than physical damage (fire loss, flood, hurricane, theft), most businesses have insufficient coverage to address the impairment in cash flow.