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by Indiana Farm Bureau Insurance

What is business income coverage and why is it important?

A woman and a man working at their small business packing something up

Make your business, our business. It is as simple as that at Indiana Farm Bureau Insurance.  


You take your time when it comes to perfecting your craft. You don’t make dry and overcooked cupcakes at your cupcake shop; you spend time creating a moist cake with the perfect icing to complement the dessert. You don’t greet your customers with silence and no smile, you greet them with enthusiasm letting them know that you are there to take care of their needs.  


That’s how we feel about our business insurance coverage options at Indiana Farm Bureau Insurance.   Our insurance agents take time to help you get the policies that fit your business needs. We help you select insurance policies that you can trust every day while you are running your business.  


As much as we  appreciate the art of creating and withstanding a successful business, we  understand that sometimes the unexpected can happen to your business.  We are here to help you through those unexpected times that are hard to see coming. We are a lifeline you can call, and with insurance coverage suited to your needs, we can help you during those stressful times. 


That’s exactly why business income insurance is so important to business owners.  


Why is business income insurance  important for my business?  


These days, we all know accidents and disasters can happen at any time without warning. Let’s say your business suffers a fire loss or a severe weather loss like a tornado. You have property coverage to help repair, re-build and replace your damaged property, but your business could be closed for several months to do this. How do you pay your normal business expenses when your business is temporarily closed?   


Business income coverage, also known as business interruption coverage, can help cover your normal business expenses during this time of uncertainty.  

What does business income insurance cover?  


If you must close your business due to direct physical loss or property damage resulting from a covered cause of loss, business income protection can help you cover normal operating costs like: 


  • Payroll Net income you would have earned if no loss occurred 

  • Leased business property 


What does business income coverage not cover?  


While business income coverage can help your business cover several costs there are a few exclusions: 


  • Income that is not documented 

  • Losses that are not covered within your insurance policy 

  • Losses that still allow your business to remain open and operate 


Looking for more information on what a Business Owners Policy does and does not cover? Don’t hesitate to reach out to a local insurance agent and they can walk you through your coverage options.  



Does business income insurance cover payroll? 


Business income protection can help you pay ordinary payroll expenses for employees that include payroll, benefits and worker’s compensation premiums, among other things.   


How do I get a business income protection policy?  


The great thing about business income coverage at Indiana Farm Bureau Insurance is that business income and extra expense coverage is automatically included with our Business Owners Policy (BOP). We also offer several optional enhancements to our business income coverage for added protection. 


If you already have a Business Owners Policy with us, that’s great! Talk with your local agent today to see if you should opt for any of the optional enhancements we offer. If you are a new business owner or looking to switch insurance companies, get a free quote and find out more about how Indiana Farm Bureau Insurance can make your business our business too!