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In The Bloom with Maria: How increased sales in 2016 can affect your premium

More business is a good thing. Increased sales is something every grower wants. But it may have an unexpected effect. As you know, loss of business income coverage covers any loss you have following a disaster as well as reimburses you for any profits lost that would’ve been earned during this down time. But as Hortica Retail Sales Specialist Maria Shepherd explains, many business owners don’t know an increase in sales means adjusting your coverage and premium.

Loss of business income coverage is standard on most business policies. It becomes crucial when you have to close your business for a period of time or run at a reduced capacity. This down time can be caused by a fire, windstorm, water break, or a variety of different causes as outlined in your policy. The insurance restores you financially to the same place you were before the loss.

Here’s how it works: If your shop is located in a strip mall and is damaged in an accident, your landlord may offer you the use of an empty suite located in the same strip. That’ll give you the chance to remain open while your shop is repaired. Using your loss of business income coverage allows you to keep paying employees and cover any additional operating expenses.

It’s forecasted that retail spending will grow by 3.1 percent in 2016. If it holds true for you and you and your business is not subject to an annual sales audit at renewal, talk to your insurance agent. Let them know your revised estimated gross annual sales which may affect your premium and coverage.

Having loss of business income coverage is extremely important for every business owner. It provides you with peace of mind knowing that you can continue operating while rebuilding if the worst were to happen. Allow Hortica to show you all of the benefits that come with our loss of business income policy.


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