Business Revenue Insurance Definition

Business revenue protection insurance is a type of key person insurance formerly known as keyman insurance.

Business revenue insurance definition. Depending on the type s of business assets you want to cover the value of your business assets where you are located your claims history your industry and the security measures you have in place will impact the cost of insurance protection and certain insurance companies may offer better terms. Operating income is income derived from normal business operations such. The interest earned by the investment of assets in either the general account for life insurance and property and casualty insurance companies or separate account for the life insurer is a component of overall revenue for the insurer. Business insurance refers broadly to a class of insurance coverage intended for purchase by businesses rather than individuals.

The aim of business revenue protection insurance is to maintain the business in the same or similar situation as it was prior to the death or incapacity temporary or permanent of a key person. Business interruption insurance also known as business income insurance is a type of insurance that covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster related closing of the business facility or due to the rebuilding process after a disaster. The purpose of business revenue insurance is to offer much needed financial protection for your business.

The interest earned by the investment of assets in either the general account for life insurance and property and casualty insurance companies or separate account for the life insurer is a component of overall revenue for the insurer. Insurers are liable for the loss of business income only during the period of restoration which is often defined as the length of time required to rebuild repair or replace damaged or destroyed property. The simple fact is that the loss of a key person could create significant issues for your business that could in turn lead to a loss in revenue. Businesses seek insurance to cover potential damage to property to.