Business Interruption Insurance
What Is Business Interruption Insurance?
Business Interruption Insurance is a type of insurance that helps pay for lost income and other expenses when a business is temporarily unable to operate due to something like a fire or natural disaster.
What Does Business Interruption Insurance Cover?
Business interruption insurance typically covers things like:
- Taxes
- Payroll
- Lost income
- Loan payments
- Operating expenses
- Temporary relocation costs
What Does Business Interruption Insurance Not Cover?
Most business interruption policies do not cover things like:
- Utilities
- Broken items/property
- Communicable diseases and pandemics
- Flood or earthquake damage (these are covered by separate insurance)
- Undocumented income (income not listed on your business’s financial records)
What are Common Causes of Business Interruptions?
Business interruptions are typically caused by fires and natural disasters like tornadoes and hurricanes. This coverage may also apply when a neighboring business experiences something like a fire and a government body forces surrounding businesses to close, too.
Some policies state business interruption coverage only applies when there is a direct physical property loss that causes the interruption. Ultimately, the specific causes covered by this type of insurance will depend on the carrier.
Note: Insurance Canopy does not currently offer Business Interruption Insurance.
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