Business Interruption Insurance
What Does Business Interruption Insurance Mean?
Business interruption insurance protects businesses from revenue losses caused by events that force operations to halt. It is typically not a separate policy but is offered as an addition to a main policy, such as a comprehensive package or commercial property insurance.
Insuranceopedia Explains Business Interruption Insurance
Unforeseen perils, such as natural disasters or fires, can disrupt business operations, often leaving business owners with no option but to temporarily close. For example, if a fire breaks out in a restaurant kitchen and damages the cooking equipment, the restaurant may be forced to close temporarily.
Premium payments for this insurance can be deducted as a business expense, and reimbursement for lost income depends on the business’s past financial records and the specific coverage limits.
