Loss-of-income insurance

Loss-of-income insurance

Insurance coverage that will pay out income that a policyholder loses as a result of a disability, injury, or business disruption.

Loss-of-Income Insurance

Insurance that covers the interruption of a policyholder's business activities, whether in whole or in part. A policy may cover loss of income from the cessation of business activities due to an act of God, such as a tornado or a hurricane, or a foreseeable incident. Likewise, it may cover partial interruption of activities, such as a situation in which an employee's long-term injury results in a loss of production. Loss-of-income insurance may also refer to personal insurance providing income for a person's disability or long-term illness.
References in periodicals archive ?
To safeguard her business investment, Smith purchased a $1 million liability policy -- "in case a customer fell or was injured." She also bought property coverage to insure her inventory against theft or fire, and loss-of-income insurance, so that she would have funds to rebuild her business should the building burn or be destroyed.
Loss-of-income insurance can pay for ongoing expenses while your business is shut down or not in full operation.
The most common loss-of-income insurance covers the loss of gross profits that result directly from a covered cause of loss.