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COVERAGE ESSENTIALS: Business Income: More Important and Much Simpler Than Agents Believe
Length: 3 Hours
Few insurance products provoke as much fear or visceral reactions as business income protection (a.k.a. time element coverage). Without being overly convincing, business income concepts are actually simple to understand and explain. The reason such fear exists is because the coverage has long been shrouded in mystery and taught (and understood) incorrectly.
Grasping and properly applying business income coverage requires little more than an understanding of time & because business income is almost entirely based on time. The amount of business income coverage and the coinsurance calculation are almost of secondary importance. In fact, determining the correct coinsurance percentage and coverage limit is the direct result of accurately estimating the time needed for a business to return to full operational capability. Contrary to popular belief, an intimate understanding of financial documents (income statements, balance sheets, etc.) is not necessary to construct a proper business income program.
This session explores the key business income concepts necessary to conquer any fear of this most important coverage.
Basic Course Information
Learning Objectives- Why is Business Income Important?
- Business Income Insuring Agreement
- Four Key Concepts in Business Income Insurance
- Calculating the Period of Restoration, Maximum Coinsurance and Minimum Coverage Amounts
- Understanding Extended Business Income
- Dependent Property Coverage
- Business Income Endorsements Every Insured Should Consider
Major Subjects
- Review the importance of business income and the business income worksheet
- Understand how to calculate the period of restoration, maximum coinsurance and minimum
coverage amounts - Understand extended business income and dependent property coverage
- Describe some Errors & Omissions (E&O) exposures that can arise when placing this coverage
Nancy Germond, Executive Director, Independent Insurance Agents & Brokers of America
Nancy Germond is the Executive Director, Risk Management and Education, for the Independent Insurance Agents & Brokers of America, the “Big I.” She is located in Phoenix, Arizona. With almost four decades of risk management experience, her unique insights and abilities help businesses better understand and manage their risk. Nancy has authored scores of risk management-related articles, and white papers and has consulted and presented to public-sector and private-sector insurance organizations. She is a licensed P&C agent and adjuster.
A second-generation insurance professional, Nancy was the first risk manager of the City of Prescott, Arizona, and has worked in the private and public sectors as a claim and risk manager. Nancy holds a B.A. in Communication from Mills College and a Master’s degree in sociology from Lincoln University. She also holds the Associate in Risk Management, the Associate in Claims designation from the Insurance Institute of America, the Insurance Training Professional Designation from the Society of Insurance Trainers and is a Senior Professional in Human Resource Management.
Christopher Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, Independent Insurance Agents and Brokers of America Virtual University
Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, president of Boggs Risk & Insurance Consulting (BRIC) with a focus on education, training, risk and claims consulting with insurance agents and insurance carriers, began the practice of insurance in 1990.
During his nearly three-and-a-half-decade insurance career, Boggs has authored over 2,000 insurance and risk management-related articles on a wide range of topics. Additionally, Boggs has written 15 insurance and risk management books including:
- "The Insurance Professional's Practical Guide to Workers' Compensation: From History through Audit," (now in its second edition);
- "Business Income Insurance Demystified: The Simplified Guide to Time Element Coverages," (now in its third edition);
- "Property and Casualty Insurance Concepts Simplified: The Ultimate 'How to' Insurance Guide for Agents, Brokers, Underwriters and Adjusters;"
- "Wow! I Never Knew That! 12 of the Most Misunderstood and Misused P&C Coverages, Concepts and Exclusions;"
- "Insurance, Risk & Risk Management! The Insurance Professional's Guide to Risk Management and Insurance;"
Boggs is a regular speaker at industry events, having taught or spoken nearly 1,000 times. This includes sessions for the National Association of Mutual Insurance Companies (NAMIC), the National Society of Insurance Premium Auditors (NSIPA), the American Association of Managing General Agents (AAMGA), the Institute of Work Comp Professionals (IWCP), the Chartered Property Casualty Underwriter (CPCU) Society and numerous independent insurance agent state association meetings. He has also earned numerous professional accolades including the 2017 Institute and Faculty of Actuaries (IFoA) Brian Hey Prize and the 2019 Casualty Actuarial Society (CAS) Charles A. Hachemeister Prize as part of a of professional collaboration with a diverse group of professionals.
His professional background includes work as a risk management consultant, loss control representative, insurance producer, claims manager, journalist and columnist, quality assurance specialist, and insurance coverage product manager.
Boggs earned a Bachelor of Science degree in journalism at Liberty University in Lynchburg, Virginia, and holds nine professional designations.
This course has no breaks
