What does BI EE in insurance mean?

Business Income and Extra Expense insurance
Business Income and Extra Expense insurance (BIEE) provides coverage when your business shuts down temporarily due to a fire or other covered loss. It helps replace your income and covered expenses like rent, payroll and other financial responsibilities while your property is being repaired or replaced.

What is included in extra expense coverage?

Extra expense insurance is coverage that pays for a company’s non-ordinary expenses after a disruptive incident. It provides cash to help you stay in business while your property is repaired or replaced. Without this financial assistance, businesses that suffer a major loss might have to close permanently.

What is business income monthly limit of indemnity?

Monthly limit of indemnity—suspends the coinsurance and will pay the business income for 3, 4 or 6 months depending on the selection made. Each month 1/3, 1/4 or 1/6 of the business limit of liability may be available to pay for the business income loss of that month.

What is the difference between business income and extra expense?

Business Income is generally defined as the net income (net profit or loss) plus normal continuing operating expenses. Extra Expense is generally defined as expenses reasonably and necessarily incurred to avoid or minimize the period in which the business is unable to operate.

How is business income and extra expense calculated?

Subtract your business’s expenses and operating costs from your total revenue. This calculates your business’s earnings before tax. Deduct taxes from this amount to find you business’s net income. Your net income will be your business income.

What is business income without extra expense?

(1) Net Income (Net Profit or Loss before. income taxes) that would have been. earned or incurred; and. (2) Continuing normal operating expenses incurred, including payroll.

How long does extra expense coverage last?

It pays for the amount of business income and extra expense loss your business faces, no matter the cost. Usually the limit of the policy is in the form of a time frame instead of a dollar amount (most commonly 12 months). Although, some insurance carriers do put a dollar AND a time limitation.

What are extra expenses?

Extra Expense Coverage — commercial property insurance that pays for additional costs in excess of normal operating expenses that an organization incurs to continue operations while its property is being repaired or replaced after having been damaged by a covered cause of loss.

How is monthly indemnity limit calculated?

MONTHLY LIMIT OF INDEMNITY OPTION: “When this option is chosen, the coinsurance clause is suspended. Instead the amount of payment for loss is calculated by multiplying the monthly limit factor by the limit of insurance selected, and this is the maximum amount available for payment in each 30-day period.

What is maximum indemnity period?

Maximum Indemnity Period In practice, this means the insurance policy will cover the business interruption losses starting on the day the incident (i.e. damage) occurs and ending at expiry of the MIP.

Can you blanket business income?

With a blanket business income policy, the entire limit of liability is available to the policyholder if there is a loss at any of the company’s locations. This provides additional coverage for both property and lost income.

How much business loss can you write off?

You can only deduct up to $250,000 of business losses on your personal return (or $500,000 if filing jointly). If your business losses exceed these limits, you can only deduct the portion specified above; any remaining losses would simply have to be absorbed.