A disaster that affects a commercial building is likely to disrupt the businesses of many tenants. It could take some time for businesses to recover from a flood in the building, but an enterprise that carries flood and business income coverage as part of Florida business insurance is more likely to survive the effects of the flood.

Take the example of a design business that leases studio space in a commercial building. Designers’ portfolios, models under construction and important design drawings are damaged in a flood. Loss of portfolios, drawings and other work in progress has a serious impact on business operations and it takes some weeks for the designers to get back to where they were before the flood.

Business income coverage compensates the business for income lost when vital material is lost because of an insured disaster. Without this compensation the business may have had to lay off its designers and may even have been forced to close. The business owner needs to provide details of business activities before and after the flood to support the claim for business income compensation.

Business income insurance is a valuable Florida business insurance product. Owners of businesses may find it difficult to ensure business continuity after a disaster if they do not carry business income insurance.  
 

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