The cost of business interruption insurance depends on the value of your business’s commercial property, as well as its industry and revenue.
The cost of adding business interruption insurance (or business income coverage) to your commercial property insurance varies significantly based on the scope of your business.
If your business occupies valuable commercial property, operates in a high-risk industry, or earns significant revenue, you’ll need to pay more for business interruption insurance. If you operate a small, low-risk business, coverage will cost much less.
Business interruption insurance typically costs between $40 and $130 per month ($500 and $1,500 per year) but coverage can cost significantly more for high-value businesses with high liabilities.
When property damage leaves your business location uninhabitable, business interruption insurance covers the cost of rent or the cost of relocating to another location. If you own or rent valuable commercial property, your business interruption insurance premiums will be higher, but so will your payout if your business is forced to shut down.
If you work in an industry where the risk of property damage is high, you’ll probably have to pay more for business interruption insurance. For example, a restaurant will likely pay higher insurance premiums than a law firm because restaurants face more risks.
Because business interruption insurance compensates businesses for lost revenue during a temporary shutdown, businesses with higher revenue tend to pay higher premiums. While these businesses pay higher premiums, they also receive more compensation.
If you want business interruption insurance with a higher coverage limit, you’ll end up paying a higher insurance premium. When you add business interruption insurance to your commercial property or business owner’s policy, you can scale coverage to fit your business.
Insurance premiums vary based on the policies a business buys. See our small business insurance cost overview or explore costs for a specific policy.