NJM Direct Connect

Business Income Insurance: An Important Part of Disaster Recovery Planning

Insurance serves as protection against the unexpected. While property insurance covers losses for physical damage to a business’s building and contents, it won’t help with expenses and loss of income due to suspended operations.

NJM offers NJM ProEdge Businessowners Policy (BOP) for small market policyholders that provides Business Income and Extra Expense (BIEE) coverage.

BIEE provides protection when your business shuts down temporarily due to a covered cause of loss — such as a fire or windstorm. It helps replace your income and covered expenses like rent, payroll, and other financial responsibilities while your property is being repaired or replaced.

This critical coverage will help your business get back on its feet after suffering an unfortunate event. It’s built into the ProEdge policy and a variable limit is available under ProPack.

Pricing factors include your:

  • Industry
  • Number of employees
  • Claims history, and
  • Amount of protection needed

Things to consider include:

  • How long your business operations might be suspended
  • The time it will take to become fully operational, and
  • Your approximate loss of revenue and expenses needed in that interim

A Business Income Worksheet can help guide you in this process.

NJM is happy to help you determine the right amount of coverage to protect your business. Please reach out to your NJM representative if you have any questions.