Business Interruption Insurance

Business Interruption Insurance, also known as business income insurance, is a type of insurance that covers the loss of income that a business suffers after a disaster or significant disruption.

The income loss covered may be due to disaster-related closing of the business facility or the rebuilding process after a disaster.

What It Covers

Should your business be impacted by an event that your policy covers, your insurance may assist with:

• Lost Revenue: Covers the revenue a business would have earned had it been operating normally.
• Operating Expenses: Pays for the operating expenses and other costs still being incurred by the business, even though it is not operational
• Relocation Costs: Covers the expense of moving to and operating from a temporary location.
• Employee Wages: Ensures you can pay your employees and retain them even when the business is not operating.
• Loan Payments: Helps you keep up with loan payments even without the normal cash flow.

Who Needs It?

Any business that operates from a physical location and is at risk of being forced to temporarily close due to a disaster (like a storm, fire, or other catastrophes) should consider business interruption insurance.

This could include retail stores, manufacturing companies, restaurants, and more.

Business Interruption Insurance provides essential financial support, enabling businesses to continue covering their expenses and maintain financial stability while recovering from a major disruption or disaster.

Without this insurance, businesses might not be able to survive the financial loss caused by an unexpected halt in operations.

In short, Business Interruption Insurance helps ensure the continuity and survival of your business during tough times.