If you own or rent a farm you run the risk that disasters, such as a fire, windstorm or even catastrophic equipment damage, will interrupt your income. During that time you still have salaries, mortgage and even utilities to pay. There is a loss of income and extra expense endorsement designed to help keep your farm afloat during a recovery period. This coverage pays for the loss of farming and business income while your property is being restored; any necessary extra expense incurred to continue operation and even covers extended expenses to get your business fully operating again.

 

If you rent or lease buildings, there is a specialized endorsement for your farm and business. This endorsement covers the farm income you would lose if those buildings were damaged or destroyed.

 

Loss of farm business income

Are you prepared to stay in business without regular income coming in? If you have a covered loss, the loss of income coverage is triggered 72 hours after the loss occurs and lasts until the property is estimated to have been repaired, replaced or rebuilt (up to 24 months). The coverage can also include incidental business income loss related to the farming such as rental income from the property.

 

During restoration, the carrier can also pay extra expenses you incur to avoid or minimize the business income loss — such as renting a temporary location, equipment or machinery and even providing heat, light and power at the temporary location. These expenses can be covered for up to 12 months. 

 

Once your repairs are completed it may take time to restore your operation to the condition it was before the loss. This coverage gives you time after the repairs are completed to get the business back to full operation (up to 60 days).