What is Business Interruption Insurance?

Business Interruption Insurance (also known as “Business Loss Insurance”) is a type of insurance coverage that business owners purchase to cover the loss of business income following a business interruption, such as a natural disaster or pandemic.

Whereas property insurance typically covers physical damage to a business, business interruption insurance covers the profits that a business would have been earned if not for the interruption. The intent of business interruption insurance is to put a business in a similar financial position as it would have been in without the interruption.

Although all insurance policies differ, many business interruption insurance clauses cover:

    1. Lost profits
    2. Fixed costs
    3. Temporary relocation
    4. Taxes
    5. Additional expenses

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