Business interruption insurance

Business Interruption Insurance

Disaster doesn't end when the storm passes—the financial impact continues while you're closed for repairs and unable to generate revenue. Business interruption insurance replaces lost income and covers ongoing expenses when covered property damage forces you to suspend operations, preventing temporary closure from destroying everything you've built in your business.

Your policy typically covers lost net income you would have earned during the closure period, continuing expenses like rent, utilities, and loan payments that don't stop just because you're closed, and sometimes temporary relocation costs if you can operate from another location. If a fire damages your restaurant and you're closed for two months during repairs, business interruption coverage replaces the income you're losing and helps pay bills that continue regardless of whether you're open.

The coverage period usually extends beyond the actual repair time to account for the ramp-up period when you reopen but haven't yet returned to normal revenue levels. Customers might have found alternatives during your closure, and rebuilding your customer base takes time. Extended business income coverage accounts for this reality, providing benefits past the physical restoration date until your income returns to pre-loss levels.

Business interruption coverage requires underlying commercial property insurance because coverage only triggers when property damage from a covered peril forces closure. The policy doesn't cover closure due to lack of customers, economic conditions, or other issues unrelated to physical property damage. We help you calculate appropriate coverage limits based on your actual income, fixed expenses, and the realistic time needed to recover from major property damage. Accurate coverage prevents the common problem of underinsuring business income, which leaves you struggling financially during recovery when you most need the protection you've been paying for all along.