COVERAGE ESSENTIALS: Business Income: More Important and Much Simpler Than Agents Believe (ABEN) 08/21/2025

Description

Few insurance products provoke as much fear or visceral reactions as business income protection (a.k.a. time element coverage). Without being overly convincing, business income concepts are actually simple to understand and explain. The reason such fear exists is because the coverage has long been shrouded in mystery and taught (and understood) incorrectly. Grasping and properly applying business income coverage requires little more than an understanding of time & because business income is almost entirely based on time. The amount of business income coverage and the coinsurance calculation are almost of secondary importance. In fact, determining the correct coinsurance percentage and coverage limit is the direct result of accurately estimating the time needed for a business to return to full operational capability. Contrary to popular belief, an intimate understanding of financial documents (income statements, balance sheets, etc.) is not necessary to construct a proper business income program. This session explores the key business income concepts necessary to conquer any fear of this most important coverage. 

Basic Course 

Information Learning Objectives •Why is Business Income Important? •Business Income Insuring Agreement •Four Key Concepts in Business Income Insurance •Calculating the Period of Restoration, Maximum Coinsurance and Minimum Coverage Amounts •Understanding Extended Business Income •Dependent Property Coverage •Business Income Endorsements Every Insured Should Consider 

Major Subjects •Review the importance of business income and the business income worksheet •Understand how to calculate the period of restoration, maximum coinsurance and minimum coverage amounts •Understand extended business income and dependent property coverage •Describe some Errors & Omissions (E&O) exposures that can arise when placing this coverage