What is Business Interruption Insurance?

Business interruption insurance is an important coverage for business to purchase. It is typically bundled into a Business Owner’s Policy (BOP). If you do not have a BOP policy, then you will want to make sure this coverage is included under your business property policy.

Business interruption insurance provides continued operating expenses when your business is temporarily interrupted and out of service. The interruption must typically be caused by direct physical damage to the business’s property due to a covered peril noted in your policy. Purchasing this coverage allows your business to continue operations and generating income when a loss occurs.

Common covered perils include but are not necessarily limited to:

• Fire
• Lightning
• Wind
•  Hail
• Explosion
• Vandalism

Common excluded perils include but are not limited to:

• Fungus, Wet rot, dry rot, and bacteria
• Earth Movement
• Government Action
• War and military action
• Off premises power failure
• Water/Flood
• Mechanical Breakdown

You should always check your policy specifically to see what perils are included or excluded under your policy as some coverage can be purchased for an additional premium. These lists above are made up of the basic and most common included coverages and excluded coverages.