When disaster strikes, property insurance may cover the cost to repair your building or replace damaged equipment, but what about the income your business loses while operations are suspended? That’s where Business Interruption Insurance comes in.

This critical coverage helps keep your business afloat during unexpected closures caused by events like fire, natural disasters, or even major equipment failure. But a question far too many business owners don’t ask until it’s too late is: Do I have enough coverage?

What Business Interruption Insurance Covers

Business Interruption Insurance (also known as Business Income Insurance) is designed to cover:

  • Lost income due to the suspension of operations
  • Ongoing expenses such as payroll, rent, and utilities
  • Temporary relocation costs if you need to move to a new location
  • Loan payments and other fixed costs

Common Coverage Gaps

Many business owners assume they’re fully protected—until they’re not. Here are some of the most common gaps:

  • Inadequate coverage limits: If your policy doesn’t reflect your current revenue, it may fall short when you need it most.
  • Limited coverage period: Some policies only cover a short timeframe, even though rebuilding and reopening can take months.
  • Missing contingent coverage: If your suppliers or key partners shut down and it affects your business, you may not be covered unless you’ve added contingent business interruption coverage.
  • No coverage for pandemics or government shutdowns: After COVID-19, many policies added exclusions for certain types of closures. It’s critical to understand your policy’s language.

How to Know If You Have Enough Coverage

Ask yourself:

  • How long would it take to get back to normal after a major loss?
  • Can your current cash flow sustain your business without income for 30, 60, or 90 days?
  • Have you reviewed your policy in the past year to reflect growth or new operations?
  • Are you relying on a single supplier, key customer, or location?

If the answers raise concerns, it’s time to reassess.

The Agent Advantage

Working with an experienced commercial insurance agent can help ensure:

  • Accurate coverage limits based on real-world data
  • Extended coverage periods tailored to your risk profile
  • Add-ons like civil authority, extra expense, or contingent coverage
  • A thorough policy review aligned with your operations and goals

Protect What You’ve Built

Every day your business is down, revenue is lost, employees may go unpaid, and customers might turn elsewhere. Business Interruption Insurance can be the difference between surviving and shutting down.

Let’s review your current policy together—before disaster strikes.

Need a second opinion on your current policy? Contact us today to schedule a no-obligation business insurance review.

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