What Is Business Interruption Insurance?
Business-interruption insurance, also called business-income coverage, can replace eligible income and continuing expenses after a covered loss interrupts operations.
It often requires physical damage to insured property, so check the trigger, limits, and waiting period. A common trigger is direct physical loss or damage to insured property from a covered cause, followed by a period of repair or restoration. The coverage can account for income the business would have earned and specified continuing expenses; it is often included in a BOP or added to commercial property coverage.
The name does not mean every disruption is insured. Check the covered-cause requirement, waiting period, period of restoration, limit, and whether the form uses actual-loss-sustained wording. Review exclusions and any separate endorsements for utilities, suppliers, civil authority, cyber events, or nonphysical disruptions.
