Business interruption insurance is a form of protection that replaces lost income and covers operating expenses if a business is forced to temporarily shut down due to a disaster like a fire or storm. By helping to pay for rent, payroll, and other fixed costs while the property is being repaired, this coverage is vital for helping a business survive and recover after an unexpected closure.
- What It Is: Insurance that replaces lost income and covers operating expenses if a business has to shut down temporarily due to a covered physical loss.
- What It Covers:
- Lost Profits: Revenue the business would have earned.
- Operating Expenses: Rent, payroll, and other fixed costs.
- Temporary Relocation: Costs to move to and operate from a temporary location.
- Who It’s For: Businesses with a physical location that would lose income if forced to close.
- Key Considerations: It is typically sold as part of a Business Owner’s Policy (BOP) or Commercial Property policy, not as a standalone product.