Coverage · FORM BI
Income protection when your doors have to close.
Business interruption insurance replaces the revenue your business would have earned while it's shut down following a covered property loss. It also covers the fixed costs that don't stop just because operations do — rent, loan payments, payroll, utilities.
What's Covered
What this policy responds to
- ✓Lost net income during the period of restoration
- ✓Fixed operating expenses that continue during closure — rent, utilities, loan payments
- ✓Payroll continuation to retain key employees during the shutdown period
- ✓Extra expense coverage for costs to speed up recovery or operate from a temporary location
- ✓Extended period of indemnity — covers reduced revenue after reopening while clients return
- ✓Civil authority coverage when a government order prevents access to your premises
Exclusions
What it typically doesn't cover
- ✗Losses not caused by a covered property event (e.g. economic downturns, pandemics without specific endorsement)
- ✗Losses beyond the maximum indemnity period stated in the policy
- ✗Utility service interruptions originating off-premises without endorsement
- ✗Vehicle losses (covered under Commercial Auto)
- ✗Inventory losses (covered under Commercial Property)
Exclusions vary by carrier and can sometimes be addressed with endorsements. Ask your advisor.
Who Needs This
Businesses that typically carry business interruption
Restaurants, retailers, and hospitality businesses dependent on foot traffic
Manufacturers where a facility shutdown halts all production
Service businesses with fixed overheads that persist through any closure
Any business whose commercial property coverage could trigger a shutdown claim
Common Questions
What clients ask before they bind
How long does coverage last?
The maximum indemnity period is set at policy inception — commonly 12 or 24 months. Longer periods cost more but are often appropriate for businesses that take time to rebuild clientele after a closure.
How is my lost income calculated?
Adjusters typically use prior-year financial statements to establish baseline revenue and project what you would have earned had the loss not occurred. Accurate books are important for fair settlement.
Is this covered if I can't access my building due to a nearby incident?
Civil authority coverage extends BI to situations where a government order — a chemical spill, crime scene cordon, or infrastructure failure — prevents access to your premises even if yours was undamaged.
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