Quick Tip: We are a community association, not a business. Why do we need business income coverage?

By May 22, 2016 April 15th, 2018 Quick Tips

Stephannie Ciantro, Claims Manager, explains the importance of business income coverage.

Business income coverage is an important part of an insurance policy, meant to cover the loss of certain types of income for an insured. For a commercial business like a restaurant or doctor’s office, it’s clear why coverage for lost income would be important. For a community association, it may take a second look to understand why such coverage is necessary. In the event of a covered cause of loss such as a fire, an owner may not pay their maintenance fees if their unit is uninhabitable. In this case, the association’s Business Income coverage would pay them for the lost maintenance. Business income could also cover income the association cannot collect if a revenue producing amenity, such as a laundry room or game room were destroyed from a covered cause of loss. These are just a few examples of why business income coverage is important for a community association.

 

Please note, we will be closing at 1pm on Friday, May 24 and closed on Monday, May 27 in observance of Memorial Day.