Business Interruption Coverage
Business interruption coverage, sometimes known as business income insurance can help replace the income you lose if you can’t open temporarily after a covered loss. Your business interruption insurance may also cover a civil authority, like a government-mandated road closure that temporarily shuts down your company.
- Revenue you’d normally make if your business was open.
- Mortgage, rent, and lease payments for the space your business operates from.
- Loan payments that you need to make during that time.
- Taxes, whether you pay them monthly or quarterly.
- Payroll for your employees.
- Relocation costs if you have to move to a new or temporary location because of physical damages.
- Extra expenses if, for example, you need to rent another space to temporarily run your business
- Training costs for employees to learn how to use new machinery or equipment
Business Interruption Coverage Restoration Period
Business Interruption Insurance Exclusions
- Broken items resulting from a covered event or loss.
- Flood or earthquake damage, which you’ll need a separate policy for.
- Undocumented income that’s not listed on your business’s financial records.
- Utilities, because they’re usually turned off when your business closes due to damage.
- Communicable diseases that cause a shutdown in your operation.