Does Business Interruption Cover Payroll?
Often, eligible payroll or wages can be covered, but duration and which employees count depend on the policy’s payroll option and terms.
NAIC guidance lists employee wages among expenses a business-income policy may cover while property is unusable. Payroll treatment is not identical in every form: an insured may select ordinary-payroll limits or a period for continuing wages, while some key employees can be specifically named. A policy may distinguish wages that continue from costs that stop during suspension.
Review the payroll option, employee categories, limit, and duration stated in the quote. Check whether payroll is included in the business-income calculation or separately sublimited, and whether the policy requires continuing wages to reduce the loss or support recovery. Keep payroll records and ask how temporary or reduced operations affect covered amounts.
Related Coverage
Sources
- Business Interruption and Business Owner Policy. National Association of Insurance Commissioners; Background; Commercial property; Business interruption; Contingent business interruption. Accessed 2026-09-25.
- What Business Income Loss Coverages Are Out There? Learn the Endorsements That Can Help with Lost Business Income. National Association of Insurance Commissioners; Top Considerations; Things You Should Know: business income, extra expense, service interruption, contingent business interruption, civil authority. Accessed 2026-09-25.
- Commercial Property and Business Income Coverage Forms in SES sample policy. Insurance Services Office, Inc.; sample hosted by SES Insurance; CP 00 10 10 12, printed pp.1–16 / PDF pp.7–22: A.1 Covered Property, A.2 Property Not Covered, E.1.b Property of Others, E.1.e Outdoor Property; CP 00 30 10 12, printed pp.1–9 / PDF pp.22–30: Business Income definition, trigger, coinsurance and restoration period. Accessed 2026-09-25.
