Business Income and Indirect Loss Coverage – Does my Nonprofit need it? Imagine your non-profit has suffered a catastrophic property loss, such as a fire or tornado.  You know that your insurance policy covers the damage to your building and business personal property.  What about other expenses that might come up, such as renting a space while yours is being repaired/replaced?  What about the income that you might lose if you are a thrift store which is unable to operate? Or a school with nowhere to put students?  What if you end up paying a lot of overtime to employees to help put the pieces of your organization back together?

Business Income and Indirect Loss insurance protects you from these “indirect” losses that occur from “direct” losses.  Business Income and Indirect Loss insurance covers things like loss of income and extra expenses such as rent, utility bills, taxes, among others, that are a result of an insurable property loss. Business income is an important insurance coverage that can get your organization back on track after an unexpected loss.

Often this is a coverage that goes overlooked. As a result, some nonprofit organizations are underinsured in this area. It’s common to have a “this would never happen to us” mentality.  Instead, it is helpful to ask, “what would our nonprofit organization do if something like this happened to us?”  Usually, the loss is far greater than you would have imagined.

How do you know if you need this coverage?  Ask your agent for a Business Income calculator or worksheet.  It will guide you through all the possible financial blows of a catastrophic loss. 

For more information on nonprofit insurance, contact your local insurance agent, Sandi Purinton with The Insurance Connection. Contact her at 678-439-8757 or to get a free insurance quote and review.

Disclaimer: This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusions. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. The Insurance Connection welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.