Coverage
Business Interruption Insurance
Business interruption coverage replaces the income a business would have earned while it is closed and pays the expenses that keep arriving. It runs for as long as it reasonably takes to reopen.
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What business interruption insurance covers
Lost net income
The net income the business would have earned had the loss not happened, calculated from your own financial records instead of an estimate. Good bookkeeping is what makes this claim straightforward.
Continuing expenses
Rent, loan payments, payroll, and the other costs that carry on whether the doors are open or not. In the first weeks after a loss these are often the more urgent half of the claim.
Extra expense
The extra cost of staying open somehow, whether that means a temporary location, overtime, or expedited equipment. Spending money to shorten a closure is generally supported by the policy.
Period of restoration
The period running from the date of loss until the property should reasonably be repaired or replaced. Coverage runs on that clock rather than on a calendar year, and the estimate of reasonable repair time is what sets the end date.
Waiting period
Most policies apply a waiting period before coverage begins, commonly 72 hours on a business owner’s policy. It works like a deductible measured in time, and a short closure can fall inside it entirely.
Civil authority
Losses caused when a civil authority prohibits access to your premises because of damage nearby. On this coast that is the endorsement that responds to an evacuation order or a closed bridge.
Contingent business interruption
Losses that follow damage to somebody else’s property, such as a supplier or an anchor tenant. A restaurant whose entire block is closed has a loss even when its own building is untouched.
Extended period of indemnity
Continues coverage for a period after you reopen, while revenue climbs back toward normal. Reopening and recovering are two different dates, and only one of them is the day the doors unlock.
Who it’s for
Who needs business interruption coverage
Storefronts and restaurants
A closed week is revenue the business never earns back. The customers who stayed away do not come in twice the following week.
Coastal tourism operators
A short operating season means a closure in July costs far more than the same closure in February.
Contractors
A damaged yard or shop can stop every active job at once.
Professional offices
Records, systems, and building access matter far more than square footage.
Our process
How we quote business interruption
Tell us what the business earns
What the business earns and spends, in real numbers. Business interruption limits are built from financial records, not from square footage or a rule of thumb.
We price it with the property
We price the commercial property and the income side together, since the income coverage is only as good as the property coverage underneath it.
We walk through a real closure
We walk through the waiting period, the period of restoration, and what a realistic closure looks like for your operation before you buy.
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Common questions
Business interruption questions we hear
Direct physical damage to covered property from a covered peril, which then forces a suspension of operations. No damage generally means no claim, however real the lost revenue was.
Usually not on its own. Most policies require physical damage to trigger coverage, so an evacuation with no damage falls outside it unless a civil authority endorsement applies. It is worth checking before the season. Read more about hurricane and windstorm coverage.
Only if flood is a covered peril on the underlying property policy, which it usually is not without separate coverage. A flooded business without flood insurance has an uncovered income loss as well.
The period of restoration is the time it should reasonably take to repair or replace the damaged property, not the time it actually takes when the delay is unrelated. It is the most disputed definition in the whole coverage.
Commonly a day or two, applied like a deductible in time. Losses shorter than the waiting period are not covered, which is why a very brief closure often does not produce a claim worth filing.
From your financial records, using historical revenue and expenses to model what the business would have earned. Clean books shorten the claim. Poor ones drag it out.
Get started
Review my business coverage
Tell us what the business earns and spends, and a licensed agent will follow up the same business day with options.