Speaking of Insurance

Your commercial property policy can help with the building and the stuff inside it after a covered loss. But does that same policy pay the income you lose while you are closed, or is lost revenue a different lane? A rebuild check is not a P&L check.

Aaron Bollinger of Bollinsure Insurance Services compares commercial property and business interruption (business income plus extra expense) for California small business owners: what each generally pays, what each generally does not, the covered physical loss trigger, waiting periods and the period of restoration at a high level, and how BOPs often package business income with time and dollar caps.

What we cover:

  • Why owners blur property and business income after a fire, water, or wind loss
  • Commercial property: building, business personal property, valuation, and the "subject to" part
  • Business income and extra expense: lost net income, continuing expenses, and getting back open faster
  • The covered physical loss trigger, and why business income is not sales insurance
  • Waiting periods, period of restoration, and extended period of indemnity
  • BOP packages vs separate property forms, and the caps to check
  • Examples: a SoCal restaurant kitchen fire and a BOP with a thin business income cap
  • What to bring a broker: occupancy, what is on site, whether you can operate elsewhere, a realistic reopen timeline, and expenses you cannot shut off

Resources:

Get quoted: Compare coverage options with Bollinsure Insurance Services at www.bollinsure.com/quote, or call 562-268-9355.

This episode is for general education only and is not legal, tax, or coverage advice. Coverage, eligibility, and pricing depend on the carrier, underwriting, and your policy terms.

Chapters

  • 00:00 Cold open: a rebuild check is not a P&L check
  • 00:31 Welcome and what this episode covers
  • 01:33 Why owners blur the two lanes
  • 02:40 Commercial property at a high level
  • 04:13 What property answers, and causes of loss
  • 05:39 Business income on modern forms
  • 06:56 Extra expense
  • 08:05 The covered physical loss trigger
  • 09:00 Rebuild check vs P&L
  • 11:09 Waiting periods
  • 12:40 Period of restoration and extended period of indemnity
  • 13:37 When BI is packaged in a BOP
  • 14:42 Questions to ask about your BI
  • 15:08 Example: SoCal restaurant kitchen fire
  • 16:07 Example: a BOP with a thin income cap
  • 17:18 What to bring a broker
  • 19:16 Episode 25 and the guide
  • 19:47 Getting help and sign-off

Transcript excerpt

Your commercial property policy can help with the building and the stuff inside the building after a covered loss. But does that same policy pay the income that you lose while you are closed? Or is lost revenue a different lane? A rebuild check is not a P&L check. Today we will separate the two jobs so California small business owners stop mixing them up.… Full episode on bollinsure.com

What is Speaking of Insurance?

Insurance, explained clearly by a family with three generations of expertise. Speaking of Insurance from Bollinsure Insurance Services features California insurance conversations with Brian Bollinger and Aaron Bollinger, covering home, auto, business and personal umbrella topics. Find episode transcripts and related resources at https://www.bollinsure.com/podcast.