What Is Business Interruption Insurance?
Business Interruption Insurance helps businesses survive an unexpected catastrophe so you can get back to normal. A Business Interruption policy can replace revenue when a business is forced to close for certain reasons. Specifically, if a fire (or any event covered by your Commercial Property Insurance) forces you to shut your doors, it can help pay ongoing bills until business resumes.
Your Business Interruption Insurance coverage can help pay for:
- Lost revenue: The income you would have earned if the incident hadn't occurred.
- Day-to-day expenses: Normal operating costs like employee wages.
- Rent and relocation: The cost of moving your business to a temporary location. This might include moving costs and rent.
Repairing a ruined office or shop may seem expensive – and it is. But repairs are only one expense you'll face after property damage. As long as you can't open your doors, you can't generate planned revenue. That's what's known as "business interruption."
Business Interruption Insurance is an essential survival tool for small businesses. If you have Property Insurance (or a Business Owner's Policy) without Business Interruption Insurance, you could be in serious financial trouble if you ever have to shut down unexpectedly.
Watch the video "What Is Business Interruption Insurance?" for more coverage details.