What Is Business Interruption Insurance?

As a business owner, you have many responsibilities and obligations that consume your time and energy.  The insurance needs for your business is one area that should be of utmost importance to you as you begin to establish a reputable, viable company.  There is insurance to cover literally any risk your company might face.  Common business insurance policies cover property, general liability, personal liability and product liability.  Did you know there is an insurance policy that will cover your business in the event you must close your business for an extended period of time?  This type of insurance is called business interruption insurance and can help your company if you are required to shut down.


Business interruption insurance will usually help cover the following:

  • Loss of income during the shutdown period
  • Expenses and bills that you still have to pay
  • Temporary location costs (to operate in while your permanent residence is fixed)
  • Expenses to operate your business while your office is closed (e.g., renting equipment)

After re-opening, your policy may even help pay for income deficiencies due to the prolonged closure.

Check with your Agent

As with all insurance needs, be sure to consult your insurance agent to discuss whether you want to purchase this type of insurance.  As a business owner, a prolonged closure is definitely something you hope never happens; however, having insurance to protect your company will help give you peace of mind.