WEDNESDAY, SEPTEMBER 13, 2023
Business interruption coverage is typically part of a commercial insurance policy. It can help replace the income a business loses if it temporarily cannot operate due to a covered loss. Some examples of incidents typically covered by business interruption insurance include fire, wind damage, falling objects, lightning damage and theft.
What Expenses Can Business Interruption Insurance Cover?
If a covered incident forces a company to shut down temporarily, the right business interruption insurance can help cover operating expenses, such as the following: 
- Mortgage, rent and lease payments
Business Interruption Insurance Exclusions
Each business interruption insurance policy may have exclusions, such as the following:
- Flood or earthquake damage
- Undocumented income that is not included in your financial records
- Infectious diseases that cause a business to close
- Costs related to replacing broken items or equipment
There are also different forms of business interruption insurance, which may mean varying coverage across different policies. It is essential to carefully review your policy with your insurance provider to understand inclusions and exclusions in your coverage and the process of filing a claim.
How Much Business Interruption Insurance Do I Need?
Every business interruption insurance policy has a coverage limit. Remember that if your business interruption costs exceed your coverage limit, you must pay them out of pocket, so it’s important to consider many factors before deciding on a policy.
When choosing your coverage, consider the following questions:
- How long would it take your company to recover from a physical loss or damage?
- How much money would it take to continue operating for a given period?
- Does the physical location of your business have a fire alarm, sprinkler system and security system that are up to date?
- If you suffered a covered loss, could you find another location to operate temporarily?
How Much Does Business Interruption Insurance Cost?
The cost of business interruption insurance varies based on a number of factors, including the business’s industry, location, number of employees and potential risks. For example, if your business is in an area with an increased risk for hurricanes, you may have to pay more for additional coverage.
Get the Right Coverage
Contact Arches Insurance today to discuss your business insurance options. We can help you get the coverage you need to be prepared for the unexpected and provide you with peace of mind.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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