Risk management is an important part of running a community association in New York or New Jersey. One of the biggest risks to your association is loss of income resulting from an unexpected event. Fortunately, business income insurance coverage can help you to protect against these losses.
Business Income Insurance Coverage in Action
Business income insurance coverage can help to protect your community association in a range of unexpected scenarios that affect the financial well-being of your community association.
It works in conjunction with your existing insurance policies and provides coverage for loss of income as a result of:
- Non-payment of maintenance fees due to damage to co-op or condo buildings caused by a covered event, such as a fire, storm or flood
- Damage to or breakdown of revenue-producing amenities within co-op or condo buildings, such as fitness centers or laundry rooms
If available, business income including extra expenses should be selected. Extra expense coverage is particularly valuable as it covers additional expenses incurred above your normal operating costs as a result of a covered event.
In short, business income insurance aims to put your association back in the same financial position it was in before the event occurred. Without business income insurance coverage, your New York or New Jersey community association might not be able to survive.
Why Your Community Association Needs Business Income Insurance Coverage
Your existing insurance coverage will protect your community association against certain losses, but it may not cover loss of income during the period between the occurrence of a covered event and until a unit is habitable or revenue producing amenity is available.
Business income insurance can provide coverage where your existing insurance coverage falls short, ensuring your community association is protected against any shortfalls in income.
To find out more about how business income insurance coverage could help to protect your New York or New Jersey community association, please contact one of our insurance agents today.