Business interruption insurance is insurance coverage that replaces business income lost in a disaster, such as a fire or a natural catastrophe. Business interruption insurance is not sold as a separate policy but is either added to a property/casualty policy or included in a comprehensive package policy as an add-on endorsement.
Key Coverage Benefits:
• Business interruption insurance is coverage that replaces income lost if a business is halted due to direct physical loss or damage, such as that caused by a fire or a natural disaster.
• Business interruption insurance includes business income, extra expense, contingent business interruption, or civil authority coverages.
• This type of insurance also covers operating expenses, moving to a temporary location, payroll, taxes, and loan payments.
• Standard business interruption insurance does not reimburse policy holders if the business is closed due to a pandemic. Even some all-risk insurance plans have specific exclusions for losses due to viruses or bacteria.