Business interruption insurance is a type of insurance that helps protect a business from financial loss resulting from the inability to operate due to a covered event. This could include things like natural disasters, fires, or pandemics that disrupt the normal operations of the business.
Business interruption insurance typically covers lost income and ongoing expenses, such as employee salaries and rent, during the period of time that the business is unable to operate. It may also cover the cost of temporarily relocating the business or of making repairs to the business’s property.
Business interruption insurance is typically included as part of a larger business insurance policy, but it may also be purchased as a standalone policy. It is important for business owners to carefully review their insurance policies to understand what is and is not covered by their business interruption insurance.