Business Interruption Insurance

Business interruption insurance is very important. For instance, without business interruption insurance, how would your business turn a profit if a fire or storm caused you to suspend business operations for an extended period of time?

Only 35 percent* of businesses have business interruption insurance. If you haven't done so already, add business interruption insurance to your business insurance policy. Here's why.

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What's Business Interruption Insurance All About?

Business interruption insurance replaces income lost while a company is shut down due to a covered disaster. For instance, if a hailstorm destroys your corporate office, business interruption insurance reimburses income that would have been earned during this period.

Business interruption insurance is not sold as a stand-alone policy. Rather, it is an optional coverage added to your property insurance policy.

What Does Business Interruption Insurance Cover?

Getting your business back up and running again as soon as possible is critical. Business interruption insurance can help keep your business afloat in the interim. Based on your financial records, business interruption insurance will compensate you for profits your business would have made had the disaster not happened.

Business interruption insurance will also cover your utility bills even though you've temporarily closed your doors. Some policies also cover payroll.

What to Consider

Don't underestimate the time it may take to get your business back up and running. It could take anywhere from a few days to several months. So, when buying business interruption insurance, make sure your policy limits will provide coverage for a sufficient number of days.

Note that most business interruption insurance policies include a 48-hour waiting period before benefits begin.

Don't let a fire or storm cripple your company's financial stability. Find a policy that includes business interruption insurance by comparing free business insurance quotes with InsWeb.

*National Association of Insurance Commissioners