Business Interruption Insurance
Replace lost income and keep operating when disaster strikes.
Business interruption insurance can replace the income your business loses when a covered event, like a fire or major storm, forces you to close or move. It keeps paying your ongoing bills, like rent, payroll, and loan payments, while you get back on your feet.
Business interruption insurance can protect your income when a covered event forces you to close or relocate for a while. Property insurance pays to fix the physical damage, but it does not replace the money you would have earned while you were closed. Business interruption fills that gap, helping your business get through the disruption and come back strong.
Who Should Consider Business Interruption Insurance?
Any business that counts on steady income and cash flow should think about this coverage. Even a short closure can be devastating, especially for a small or mid-sized business.
- Retail stores, restaurants, and hospitality businesses
- Manufacturing and production facilities
- Professional offices that need people to get into the building
- Businesses in areas prone to fire, flood, or severe weather
- Any company that would lose income if it had to close for a while
What can be covered?
Lost Profit
Can replace the profit your business would have made during the shutdown, worked out from your financial records after taking out the costs that stop.
Rent & Lease Payments
Can keep your rent or lease paid even when you cannot use your space.
Ongoing Bills
Can cover ongoing costs like utilities that you still have to pay while you are closed.
Relocation Costs
Can cover the cost of moving to a temporary location, including rent and moving expenses.
Employee Wages
Helps you keep your staff by covering payroll during the closure, so you do not lose good people.
Loan Payments
Can keep your loan payments up to date even while your business is not bringing in money.
Coverages shown are general examples, not a description of any specific policy. Policy coverages widely vary and should be confirmed with your broker.
One of the Most Valuable Yet Overlooked Coverages
Insurance experts consistently rank business interruption as one of the most valuable coverages there is, yet business owners often overlook it. Because property insurance only pays to fix physical damage, the income you lose while you rebuild can be the difference between bouncing back and closing for good. Adding this coverage to your property policy is a simple step that makes a big difference.
How Pricing Works
What drives your premium
- The income you are insuringThe premium is built on the earnings your business would lose during a shutdown, taken from your financial records. Understating it to save money is the most common way businesses end up short after a real loss.
- How long it would take you to reopenThe recovery period you insure for, commonly 12 months but often longer for a specialized building or custom equipment with a long lead time. A longer period costs more, and setting it too short is the mistake we see most.
- The waiting periodMost policies do not pay for the first 48 to 72 hours of a shutdown. Accepting a longer wait before payments start lowers your premium.
- The property risk underneath itThis coverage only responds to something your property policy covers, so everything that makes your building risky, its construction, sprinklers, location, and hazards, feeds into this price too.
- How exposed you are to one point of failureA business running out of a single location, on one custom machine, or through one key supplier has more to lose from one event than one that can shift work elsewhere.
- How quickly your industry recoversA professional office can work from anywhere in a week. A restaurant or a production facility needs its space and its equipment back before it earns a dollar, and that difference shows up in the price.
- The extras you addCoverage for the added costs of staying open somewhere else, and for losses caused by a supplier, a key customer, or a utility going down rather than your own property, each add to the premium.
Frequently asked questions.
What does business interruption insurance cover?
It replaces the income you would have earned while a covered event keeps you closed, and it keeps paying the bills that carry on anyway, like rent, payroll, utilities, and loan payments. It can also cover a temporary move. In short, property insurance rebuilds the building, and business interruption keeps the business alive while you do.
How is it different from property insurance?
Property insurance pays to repair or replace physical damage, meaning the building and its contents. It does not replace the income you lose while you are closed for repairs. Business interruption fills that gap, which is why the two are almost always bought together.
How long does the coverage last?
It pays for the time it reasonably takes to repair, rebuild, and reopen, up to your policy limit, and sometimes for a bit longer to help you win back customers. Because recovery can take longer than expected, it is important to set that time frame realistically, and we will help you do that.
Does it pay out any time my business closes?
No. The closure has to come from something your property policy covers, like fire, storm, or water damage. Closures from things like a pandemic or simply losing customers are generally not covered unless you specifically add them. We will be clear about what does and does not cause it to pay.
How is the payout worked out?
It is based on the income your business would have earned if the loss had not happened, taken from your financial records, minus the costs that stop while you are closed. Accurate, up-to-date bookkeeping makes claims smoother and faster. We will help you document your income so your coverage reflects what the business actually earns.
Is there a waiting period before it pays?
Usually yes. Most policies have a short waiting period at the start, often around 48 to 72 hours, before lost income is paid, so the first day or two of a shutdown is typically not covered. We will make sure you understand the waiting period and set a time frame long enough to see you through a realistic recovery.
Keep Your Business Running
Our team is ready to find the right coverage at the right price. Get a tailored quote today.