Business Interruption Insurance
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Business Interruption Insurance Quotes
Get Business Interruption Insurance to Cover the Costs of Getting Your Business Back.
Business Interruption Insurance helps protect your business from risks not typically covered by general business liability policies. Also called Income Interruption Insurance, Business Interruption Insurance is an essential part of a comprehensive business insurance portfolio for your company, regardless of its size. Business Interruption Insurance reduces your exposure to loss of revenue from any covered event that prevents you from doing business as usual. Business Interruption Insurance is not sold separately, but can be purchased as a rider to your business’s property insurance policy or included in a package policy. As a complement to Business Interruption Insurance, you should consider Extra Expense coverage, which will cover the additional costs of getting your business back to its normal operations such as renting temporary facilities.
You can get quotes for Business Interruption coverage and Extra Expense coverage using the form at the top of this page.
Who Needs Business Interruption Insurance?
You need Business Interruption Insurance if your business:
- Would lose revenue or customers from a fire or similar catastrophe that would cause it to shut down temporarily
- Does not currently have Business Interruption Insurance and want to protect yourself from potential risk exposure
What Does Business Interruption Insurance Cover?
After a disaster, a complete shut down will likely drive customers to the competition. With business interruption coverage, the damage can be repaired quicker while protecting income, so you can get up and running again faster.
- Business Interruption Insurance typically replaces business income lost as a result of a fire or named natural disaster. Be aware, however, that most policies do not pay if your business is forced to relocate or cannot operate because of an earthquake, act of terrorism or flood, unless you have specifically requested supplemental coverage for such events. Also note that there may be a 48-hour waiting period before your policy begins payments on a claim.
- Business Interruption Insurance generally compensates for lost income, any profits that you can demonstrate would have been earned if the covered event hadn’t happened, and expenses such as utility bills that continue to be incurred while your business is unable to operate. Some policies will also cover the costs of operating from a temporary facility while your main place of business is being repaired, however this type of coverage is usually handled by an Extra Expense rider.
How Much Does Business Interruption Insurance Cost?
When purchasing business interruption coverage to add to your property insurance, it’s best to make sure it will cover company expenses for a minimum of one week, but more if business size warrants it. Coverage usually doesn’t begin until 48 hours have passed since the shut-down, and many businesses can’t open again for several weeks.
How much you’ll pay for business interruption insurance depends on what kind of business you’re insuring and where it is located. If the business is an area prone to fires, for example, it will cost more. If your business is at a higher risk of fire in general, such as a restaurant, it will cost more to insure. For a business that can easily continue off-site during repairs, coverage will cost less.
Affordable Business Interruption Insurance Quotes
Rates for Business Interruption Insurance are affordably priced. Premiums will depend on the amount of coverage you need and the type of business you operate. For example, premiums for a business that has a higher risk of interruption from fire (such as a restaurant) would probably be higher than for a bookkeeping business. When seeking quotes for Business Interruption Insurance, be sure your policy limits are sufficient to cover your operations for more than a few days; people often underestimate the time it takes to get a company back to normal after a disaster. Also ask about supplemental coverage for Extra Expense Insurance and other policies to provide protection for potential perils specific to your type of business.
You can get competitive quotes for Business Interruption Insurance from one or more companies by using the form at the top of this page. If you don’t wish to purchase insurance now, please leave your current policy expiration date on the form provided. When your expiration date is closer, you will be contacted so that you can comparison shop for Business Interruption Insurance at that time.
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Frequently Asked Questions (FAQs)
Get clear answers to common insurance questions and important details to guide your coverage decisions.
What is Business Interruption Insurance?
Business Interruption Insurance, also known as business income insurance, helps replace lost income when a business cannot operate due to a covered event such as a fire, theft, or natural disaster. This coverage helps businesses recover lost revenue, pay rent, taxes, payroll, and other necessary expenses during the recovery period.
Who needs Business Interruption Insurance?
This insurance is particularly beneficial for small and medium-sized businesses that rely on a physical location to operate. Industries such as restaurants, retail, manufacturing, and professional services (like law firms and accounting offices) often need this coverage to protect against income loss during unexpected closures.
What does Business Interruption Insurance cover?
It covers lost revenue, rent or lease payments, loan repayments, payroll, taxes, and extra expenses like moving to a temporary location. Some policies also include coverage for additional costs associated with relocating or renting temporary space to continue operations while repairs are being made.
What is not covered by Business Interruption Insurance?
Common exclusions include losses from floods, earthquakes, utility outages, and pandemics or communicable diseases like COVID-19. Coverage is also not provided for revenue that is not documented in business financial records. Repair costs for physical damage are covered under property insurance, not business interruption coverage.
How much does Business Interruption Insurance cost?
Costs vary widely depending on the business size, location, industry, and amount of coverage. Premiums typically range from a few hundred to a few thousand dollars per year, based on factors like risk profile and specific coverage needs.
Can business interruption insurance be part of a broader insurance policy?
Yes, business interruption insurance is often included as part of a broader commercial property insurance policy or a Business Owner’s Policy (BOP). Bundling these coverages can be more cost-effective and ensure comprehensive protection against various business risks.
How do I choose the right Business Interruption Insurance policy?
To select the right policy, assess your business’s specific risks and recovery needs. Consult with an experienced insurance agent to customize coverage that includes necessary protections like extra expense coverage and contingent business interruption coverage, which can cover losses from disruptions at your suppliers.
