Business interruption insurance is designed to cover income lost when an event beyond your control forces you to close your business temporarily. This extra layer of protection goes beyond common business insurance policies. For example, if a fire in your office forces you to shut down temporarily, property insurance will cover the damage from the fire, but not the loss of income. The lost income is covered by business interruption insurance.
What Business Interruption Insurance Covers
A business interruption policy can provide coverage for:
Business Interruption Insurance Exclusions
Like any other insurance, business interruption insurance has limitations and exclusions. It does not cover every event that could possibly cause your business to close its doors. If a non-covered event such as a flood keeps your business from operating, you will not be covered by business interruption insurance unless you have a flood insurance endorsement to your property insurance policy.
Generally, business interruption insurance will not cover:
Although there are exclusions, as with any insurance policy, business interruption insurance may provide the extra layer of protection your business need. Speak with an experienced agent about the best available rates for adding business interruption insurance to your business and commercial insurance package.