Business interruption insurance definition

Business interruption insurance is coverage to protect a business against losses resulting from a shutdown of the business due to fire, floor, wind damage, or other natural disaster. It generally covers lost net profits and necessary ongoing expenses such as rents, operating expenses and more, depending on the policy. Some policies cover the cost of temporary facilities. The intent is to provide capital to mitigate the loss of profits and to sustain the business during the interruption.

Business interruption insurance is sold only as part of a property insurance policy or other package policy. All business interruption insurance is not created equal. Be sure to have your agent go over your coverage in detail so you know what is and is not covered.