Business Interruption Insurance: Who Qualifies and What You Get
Learn how business interruption insurance works to protect your income if unexpected events force your business to stop operating.
Business interruption insurance is a type of coverage designed to help protect your business by replacing lost income if an unexpected event forces you to stop operating.
Who it's for
This coverage is generally intended for businesses that rely heavily on physical venues or specific scheduled events to generate revenue.
What you get
If your business operations are interrupted, this insurance provides reimbursement for the income you would have earned during that period.
What it costs you
To have this protection, you must pay an annual premium to your provider. You will also need to maintain highly detailed financial records to prove your lost income during a claim.
The catch to know
Be aware that many policies now include specific exclusions for interruptions caused by pandemics, a common change in terms following 2020.
How to apply
- Research different private insurance providers to compare coverage options.
- Review your business's financial records to ensure you can provide proof of income.
- Check the specific terms and conditions regarding pandemic exclusions.
- Contact a provider to set up a policy and pay your premium.