The Importance of Business Income Coverage

Business Income CoverageSevere weather events can happen at any time of year, and the odds seem to be stacked against business owners in a storm’s path. According the Federal Emergency Management Agency (FEMA), 40 percent of businesses do not reopen after a disaster and another 25 percent fail within one year. The U.S. Small Business Administration estimates that 90 percent of businesses fail within two years following a disaster.

Large natural disasters – fire, flood, earthquake and wind – frequently come to mind when considering the type of occurrence that could shut down a business for good, but the truth is that smaller-scale events also can be devastating.

Disaster planning and preparation are critical concerns for business owners, and one key element is insurance. Business income insurance (or business interruption insurance) pays the policyholder for loss of income and expenses following damage to the property resulting in the partial or total suspension of operations.

As a program administrator with 40 years of experience writing self-storage risks, MiniCo understands both the importance and challenges of this coverage. Business income insurance is one of the most complex, least understood and most undersold coverages available to property owners. At the same time, it is absolutely critical to the survival of a business following a catastrophic loss.

If you are writing self-storage risks, MiniCo invites you to learn more about the benefits of business income insurance. Our self-storage BOP includes business income insurance up to 15 months of actual loss sustained with options of up to 18 months and up to 24 months. Contact a MiniCo representative at 800-447-8383 or

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