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.