Business Income or Business Interruption coverage can be one of the most misunderstood property coverages if it is not properly explained. It is very important for fitness facility owners to understand the details of their coverage, also to know what is necessary for full indemnification of loss of income and expense. If the details are clear, the opportunity is much greater to have little to no effect from an incurred loss.
What is Business Income coverage?
Business Income insurance will pay the business the net income loss after a covered loss. A fire or other covered loss can put a gym out of business without business income coverage. During the time repairs are made you will likely have to pause membership fees and will be out your other ordinary income until you are running again. This can be days, weeks, or months depending on the severity of the damage.