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Business Income coverage (or Business Interruption coverage) provides protection against financial losses that are sustained while a business is unable to operate because of property damages.

What you should know

• Business Income coverage is a type of property insurance that is triggered by a direct physical loss of or damage to property by a covered cause of loss.
• A communicable disease (like COVID-19) may not be covered without a physical loss of or damage to property.
• Civil Authority coverage is a related property insurance that applies to situations where access to an insured’s property is prevented or prohibited by an order of civil authority because of physical damage.
• “Business Income” is defined as the net income plus the normal continuing operating expenses of a business.
• The “period of restoration” begins when a business is forced to suspend its operations because of damages and ends when the covered damages are (or reasonably could have been) repaired.
• Business Income coverage is different from property insurance in that property insurance only covers the physical damage to the business (not profits or payroll).
• The cost for coverage is determined by: the business size, coverage limit, and the risk of natural disasters in the area where the business is located.

Coverage Information

• Common reasons for Business Income claims include fires, tornadoes, explosions, industrial accidents, chemical/hazardous material spills and other natural or loss scenarios. 
• Business Income coverage typically WILL provide coverage for:
  • Lost income
  • Normal operating expenses that need to continue
  • Moving or temporary location fees
  • Payroll
• Business Income coverage typically WILL NOT provide coverage for:
  • Utilities
  • Income that isn’t documented
  • Losses from partial closures
  • Closures from downed power lines
• Business income from a cyber incident is covered by a specific cyber business income policy

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Cox Insurance provides Home, Auto, Liability and Commercial insurance that exceeds expectations. For a personalized quote, please contact us here.

With the combination of warm weather, a heavy snowpack, and recent rainfall, we are encountering numerous client concerns around flooding. Where is all this water is going to go?!

What you should know

When snow melts and the frozen ground thaws, water can find its way into your home causing various levels of damage.

Insurance Coverage

Insurance coverage is determined by how the water enters your home. The three most common ways are:

1. Surface water – Water that collects on the surface of the ground and enters your home through a window, door, or other opening. 
   Surface water situations are typically not covered by insurance unless you have purchased a flood insurance policy.
2. Foundation seepage – Water that  infiltrates your home through hydrostatic pressure/seepage of water through the foundation or walls.
   Foundation seepage situations are typically not covered by insurance.
3. Water backup – Water enters your home through a line/drain or a drain tile system. This may include a sewer line or sump pump backup or failure.
   Water backup situations are typically covered by insurance, but are potentially dependent on if you have a sump system and subject to your policy’s water sewer back up limit.

Insurance coverage is ALWAYS dependent on each individual situation. Coverage scenarios will vary by carrier and the conditions and specifics of each property. Individual carriers will determine if and what coverage is available.   

Questions?

We’re happy to help! Contact the Cox Insurance team with any questions. 

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Cox Insurance provides Home, Auto, Liability and Commercial insurance that exceeds expectations. For a personalized quote, please contact us here.

During extreme winter weather, we receive a lot of inquiries regarding damages caused by ice dams.

What you should know

• What is an ice dam?
  An ice dam is a ridge of ice that forms at the edge of a roof and prevents melting snow from draining off the roof. When water backs up behind the dam, it can leak into a home and cause damage to walls, ceilings, insulation, and other areas.
• What causes ice dams? 
  Three things are required for an ice dam to form: snow, heat to melt the snow, and cold to refreeze the melted snow. The heat from inside the home rises through the ceilings and into the attic. Without sufficient attic ventilation, heat collects under the roof deck, melts the snow on the roof, and refreezes before dripping off the roof. As this process continues, the layer of ice at the eave gets thicker; eventually causing a “dam” that traps the melted snow behind it and creates a pool of water.

• Ice dams can lead to different types of damage. Water from the melted snow pools and eventually backs up onto the roof surface. The pool of water can creep under the shingles and into the home causing interior water damage to walls, ceilings, insulation, and other areas. Sometimes the ice dam can cause damage to the roof covering as well. The water can also continue to re-freeze, causing gutters to potentially collapse from the additional weight.

Insurance Coverage

• Insurance coverage related to ice dams is dependent on the extent of the damage and differs by carrier. The damage caused by the ice dam is typically a covered claim (subject to your deductible); however, the removal of the ice dam itself may or may not be covered. If there is coverage for the removal of an ice dam, it is usually limited to the area that is causing the damage, not the entire property.  Any future preventative measures (like increasing your attic insulation) are a great idea, but those costs are generally NOT covered by insurance.
• Prevention is always the best defense! Many of the ice dam situations we encounter are often not significant enough to warrant a claim. It’s best to try to avoid the problem.
• Every situation is different. Coverage scenarios will vary by carrier and the conditions and specifics of each property. Individual carriers will determine if and what coverage is available.   

Questions?

We’re happy to help! Contact the Cox Insurance team with any questions. Stay warm and safe!

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Cox Insurance provides Home, Auto, Liability and Commercial insurance that exceeds expectations. For a personalized quote, please contact us here.