Business Income and Extra Expense

Business Income insurance is designed to cover your loss of business income sustained due to the necessary suspension of your operations during a period of restoration following a covered cause of loss. Business income is net income (net profit or loss before income taxes) that would have been earned plus continuing normal (necessary) operating expenses incurred, including payroll. In short, it pays "continuing business expenses" as well as "profits". It is designed to make the Profit and Loss Statement perform as though no loss occurred. For example, if your building is severely damaged by fire you will have to close down for repairs and normal business operations, including income, will halt or slow down while repairs are being made. This insurance is designed to reimburse you for that lost income and any necessary business expenses during that time.

The Business Income Coverage form can also include Extra Expense insurance, which covers all necessary expenses incurred during the period of restoration that would not have been incurred if the property loss that necessitated them had not occurred. For example, the costs incurred from leasing a new location to conduct business while repairs are being made to the permanent location.

TriNet offers insurance as part of an HR outsourcing arrangement or as a stand-alone offering. For more information about TriNet Insurance Services, please call 1-888-842-6805.