Navigating the world of commercial insurance can be bewildering for a business owner. Two terms you will often encounter are business interruption insurance and business income insurance. It’s essential to know the differences between these policies so you can determine which best suits your business. Making the correct choice ensures robust protection, enabling your business to thrive, even in challenging situations.

Property vs. Income

These two policy types are occasionally used interchangeably, although they are distinct. Business interruption insurance focuses on property-related losses, such as those concerning equipment, inventory, and the commercial building itself. Conversely, business income insurance pertains to lost income when a business shuts down temporarily. To ensure comprehensive protection, you may want to consider including both policies in your commercial insurance package.

Business Assets

In the event of unforeseen circumstances, such as a crime, natural disaster, or any other incident beyond your control, maintaining payments on your commercial property and protecting your business assets is crucial. This scenario underscores the importance of business interruption insurance. It ensures you can continue meeting your business obligations and restart operations promptly.

Salaries

Employees’ salaries can suffer a significant blow in the face of the unexpected. Thanks to business income insurance, you can continue remunerating your employees and prevent them from seeking employment elsewhere. This coverage protects more than wages; it allows you to retain quality staff who contribute immensely to your business’s success.

If you’re based in the Milwaukee, WI, area and need guidance about commercial insurance, our team at Dern & Company is ready to assist.