Business interruption insurance replaces lost income when covered disasters temporarily stop operations, typically through a property/casualty policy add-on or package endorsement rider.
Coverage usually runs during the interruption period, from covered peril through physical repair, with possible waiting periods of 48 to 72 hours.
Policies may reimburse missed profits, fixed costs, temporary locations, extra expenses, employee wages, taxes, loan payments, commissions, and training after covered disruptions.
Common exclusions include broken items, flood or earthquake damage requiring separate policies, undocumented income, utilities, and losses tied to viruses or communicable diseases.
Before relying on coverage, review covered causes, documentation standards, policy limits, expense categories, and whether your business needs added endorsements for gaps.
