About this episode
What the conversation covers.
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:
- All Speaking of Insurance episodes
- Read the guide: Commercial property and business interruption in California
- Episode 25 companion: business interruption, lost income, and extra expense
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