Assessing business income
Every business has the risk of being interrupted and potentially shut down. That’s why business income (BI) coverage is a key component of every business insurance program. It’s a common coverage, but many industries have unique circumstances that can have a widely varied impact on business income. This can result in businesses being underinsured if not reviewed regularly.
Three business income stats to consider
of businesses are unintentionally underinsured for business income
of businesses feel that after a serious property loss, they had inadequate business income coverage
Failure to properly estimate time needed to resume operations is the main cause of inadequate business income limits
Five questions to ask your clients
Renewal time is the ideal time to make sure your client's BI coverage is right-sized to address the risks they currently face. Start by asking these questions, and if you hear a yes, it's time to review their BI coverage.
- Have the policyholder's operations changed?
- Has the business added new departments, products or services?
- Has payroll and/or sales changed significantly?
- Has the business added any new locations or closed existing locations?
- Has the business added or changed any suppliers/vendors, key contacts or key customers?
Business income resources
Business income infographic
This infographic highlights the predominant risks that threaten business income - and actionable steps to help avoid them.
Resources for your customers
Our Risk Solutions team can help your Hanover commercial clients understand the importance of business continuity planning, with resources and tools to help them create a plan.
Business continuity planning guide
Free, downloadable business continuity planning tool kit
Open for Business - disaster and recovery planning service
Supply chain management - article
Checklist and guidance on disaster preparedness and recovery
Explore all of our resources for commercial lines agents
Source for stats: menti.com