When I saw the news about a popular restaurant in Genesee County destroyed by fire, one thought immediately came to mind: this is going to take a long time to rebuild.
And while bricks, mortar, and new furniture can eventually be replaced, what about the income the restaurant owner will lose while the doors are closed? What about the loyal employees who suddenly find themselves out of work? And how long will it take for customers to return once the restaurant finally reopens?
That’s where Loss of Income coverage—and more importantly, Full Resumption of Operations coverage—step in.
What Is Loss of Income Coverage?
Loss of Income coverage (sometimes called Business Interruption insurance) helps protect businesses when a covered disaster, like a fire, forces them to close temporarily.
Instead of being left with zero revenue, the policy helps replace the income the business would have earned if it had been operating normally.
But here’s the key part that many business owners overlook: it doesn’t just cover profits—it can also cover ongoing expenses, like:
- Payroll for employees
- Rent or mortgage payments
- Utilities
- Taxes
That means you can keep paying your staff even while the doors are closed. Why is that so important? Because if your employees have to leave for other jobs just to survive, you risk reopening without the trusted team that made your business successful in the first place.
The Hidden Challenge: Rebuilding After Reopening
Here’s the reality: the day you reopen isn’t the day your revenue returns to normal.
Think about that restaurant. Customers who once dined there weekly may have found new favorites while the doors were closed. It could take months before business returns to pre-fire levels.
That’s where Full Resumption of Operations coverage comes in.
This extension of Loss of Income coverage continues to support your business even after reopening, giving you the financial runway to rebuild your customer base and restore your income stream.
Why Business Owners Need to Pay Attention
Too often, business owners assume that property insurance alone will protect them after a disaster. But replacing the building is only one part of recovery. Without Loss of Income and Full Resumption of Operations coverage, you could be left with:
- No revenue while you’re closed
- No way to retain your employees
- No financial cushion as you rebuild customer loyalty
As an agency owner, I’ve seen firsthand how the right coverage can mean the difference between a business that never reopens and one that bounces back stronger.
The Bottom Line
If you’re a restaurant owner—or any small business owner—you need to ask yourself:
- Does my current policy include Loss of Income coverage?
- Does it allow me to keep paying my employees during a closure?
- Do I have Full Resumption of Operations coverage to protect me after reopening?
If you’re not sure, it’s time for a review. Disasters don’t just test your property—they test your resilience. With the right insurance in place, you can protect your income, your employees, and your long-term success.
👉 At VanScoter Insurance, we help businesses in Greece, NY and across Genesee County make sure they have the coverage they need before disaster strikes. Contact us today to review your policy and build a plan that helps you not just rebuild—but fully recover.
