Business interruption insurance, also known as business income insurance, is a type of insurance coverage that helps protect businesses from financial losses resulting from a temporary shutdown or disruption of normal operations due to a covered event. It provides coverage for lost income, ongoing expenses, and additional costs incurred during the period of interruption. It’s important to note that business interruption insurance is typically not sold as a standalone policy but is added as an endorsement or included in a comprehensive commercial property insurance policy. The coverage and limits can vary, so it’s essential to carefully review the policy terms, conditions, and exclusions to understand the specific coverage provided.
Business interruption insurance can be a crucial risk management tool for businesses, especially those that heavily rely on their physical premises or equipment to operate. It helps businesses recover financially after a significant disruption, enabling them to maintain their operations and mitigate the long-term impact of the interruption.
