What is Business Interruption Insurance?
Business Interruption Insurance provides coverage for net income lost following an insurable property loss. In addition to covering lost income, Business Interruption Insurance is intended to cover overhead costs or expense required to keep your business operating, including rent and utilities, as well as employee payroll.
Business Interruption Insurance is not a standalone policy as it is typically included in your commercial property insurance policy or may be added to your existing policy as a rider.
Most policies respond after 12 or 24 hours of consecutive business closure.
Examples of some expenses that may be covered include
- Overhead operating costs, such as rent and electricity
- Mortgage, rent, and lease payments
- Moving to a temporary location
- Employee’s wages and payroll.
- Internet and telephone connections
- Taxes and loan payments.