Business Interruption Insurance

Business Interruption Insurance Coverage: Free Quote

Business interruption insurance, also known as Business Income insurance, is a form of time-element coverage. It replaces lost income a business would have made during a specific period had no loss occurred. Coverage, however, is triggered only if there is direct physical damage to covered property by a covered cause of loss. Operating expenses can also be covered if a business needs to change locations or make loan payments. However, it often does not protect closed businesses if a pandemic occurs.  ,

What Types of Businesses Should Consider Business Interruption Insurance?

An example of business interruption coverage at work is in the case of a fire at a business owner's covered headquarters. If the fire destroys the building and the business is closed for a week and then running at a lower capacity for several months, then a business interruption policy would be triggered. It would pay out the lost income the business would have made during the closure and lowe -production period had the loss never occurred.