Business Income Insurance
Business Income Insurance in Central Texas
Serving Austin, San Antonio, Houston and surrounding areas
Protect Your Cash Flow When the Unexpected Shuts You Down
When you own a business, a lot can go wrong—and not all of it involves physical damage you can see. A fire, storm, or other covered loss can force you to close your doors temporarily, even if it’s no fault of your own. While repairs are being made, the bills don’t stop.
That’s where Business Income Insurance (also called Business Interruption Insurance) comes in.
At Dowd Insurance Agency, we help Central Texas business owners protect their income, payroll, and ongoing expenses so a temporary shutdown doesn’t turn into a permanent one.
What Is Business Income Insurance?
Business income insurance helps replace lost income when your business is forced to suspend operations due to a covered property loss—such as fire, wind, hail, or certain types of water damage.
In simple terms:
- Property insurance helps repair or replace your building and equipment
- Business income insurance helps replace the money you would have earned if the loss hadn’t happened
This coverage is typically included as part of a Business Owners Policy (BOP) or a commercial property policy, not purchased on its own.
What Does Business Income Insurance Cover?
While policies vary, most business income insurance policies can help cover:
Lost Net Income
The profit your business would have earned if operations hadn’t been interrupted.
Continuing Operating Expenses
Expenses that don’t go away when your business closes temporarily, such as:
- Rent or mortgage payments
- Utilities
- Loan payments
- Insurance premiums
Payroll Coverage
Many policies allow you to continue paying key employees so you don’t lose your trained staff during a shutdown.
Taxes
Certain taxes that continue even when your business isn’t operating.
Extra Expense Coverage: A Critical Add-On
Most business income policies include or offer Extra Expense coverage, which pays for reasonable additional costs you incur to get back up and running faster.
Examples include:
- Renting temporary office or retail space
- Leasing equipment
- Paying overtime to speed up reopening
- Expedited shipping for replacement materials
In many cases, spending a little more upfront can significantly reduce how long your business is closed—and how much income you ultimately lose.
A Practical Business Income Coverage Example
Imagine a restaurant in Round Rock that suffers a kitchen fire.
- Repairs take 3 months
- The dining room is closed the entire time
- Rent, utilities, and loan payments continue
- Employees may need to be paid to avoid turnover
Without business income insurance:
The owner must cover these costs out of pocket, while bringing in little to no revenue.
With business income insurance:
The policy helps replace lost income, covers ongoing expenses, and may pay extra costs to reopen faster—keeping the business financially stable.
What Business Income Insurance Does Not Cover
Understanding the limitations is just as important as knowing what’s covered.
Most policies do not cover:
- Losses caused by events not covered under your property policy
- Shutdowns due to power outages off-premises (unless endorsed)
- Losses from pandemics or government-mandated closures (unless specifically added)
- Poor business performance unrelated to a covered loss
This is why policy design matters. Coverage gaps are common when policies aren’t tailored properly.
How Long Does Business Income Coverage Last?
Coverage applies during the period of restoration—the time it should reasonably take to repair or replace the damaged property and resume operations.
Policies may also include:
- Extended Business Income coverage, which continues for a set time after reopening while revenue returns to normal levels
Choosing the right time limits is critical, especially for businesses that take longer to fully recover.
How Much Business Income Coverage Do You Need?
The right amount depends on:
- Your revenue and profit margins
- Fixed monthly expenses
- Payroll needs
- How long it would realistically take to rebuild or relocate
Underinsuring business income is one of the most common (and costly) mistakes business owners make. We help calculate realistic figures so your coverage works when you need it most.
Who Needs Business Income Insurance?
If your business depends on:
- A physical location
- Specialized equipment
- On-site employees
- Customer foot traffic
…then business income insurance is essential.
This includes:
- Retail stores
- Restaurants and bars
- Contractors and trades
- Medical and professional offices
- Manufacturers and warehouses
If a shutdown would disrupt your cash flow, this coverage deserves serious attention.
Business Income Insurance in Central Texas
Businesses in Central Texas face unique risks—from severe storms and hail to fires and water losses. At Dowd Insurance Agency, we work with multiple insurance carriers to design business income coverage that fits your industry, location, and financial realities.
We don’t believe in one-size-fits-all policies. We believe in coverage that keeps your business alive after a major loss.
Frequently Asked Questions
Is business income insurance required by law?
No, but lenders and landlords often require it—and many business owners wish they had it after a loss.
Is it expensive?
Compared to the potential financial impact of a shutdown, business income insurance is typically very cost-effective.
Can I add it to my existing policy?
In many cases, yes. We can review your current coverage and identify gaps.
Let’s Protect What Keeps Your Business Running
If you own a business in Austin, Cedar Park, Round Rock, Georgetown, or anywhere in Central Texas, we’d be happy to review your coverage and explain your options—no pressure, no jargon.
Contact Dowd Insurance Agency today to make sure a temporary interruption doesn’t become a long-term setback.