Business Interruption

Business interruption insurance insures against loss or damage to the cash flow and profit of a business caused by the business being unable to operate because of interruption. The easiest example is to think about a critical piece of machinery being struck by lightning.

The repairs to the machine may be covered by other coverage such as property or casualty insurance. But a loss situation could result in your business not being able to operate for a period of time. if you cannot make widgets for 3 months, than there is no replacement of that income without this coverage.

If a covered situation causes you to close for 3 months, business interruption insurance covers expenses and lost income including net profits, rents, salaries and other expenses for that period of time. It can also provide protection for setting up a temporary business operation as well as a variety of other costs. There are a variety of options available with this type of coverage. If you are a builder, you face additional challenges if you a job you are working on becomes damaged. For this situation, it is wise to have Builder’s Risk Insurance.