Business interruption insurance
What is Business Interruption Insurance?
Business Interruption Insurance (BI) is also known as Loss of Profit Insurance (LOP) or Loss of Income Insurance.
Business interruption insurance is a policy that covers and reimburses income lost following a disaster. It allows business owners to focus on rebuilding and resolving the problem.
Business interruption insurance helps companies recover almost as if the interruption never occurred, allowing them to focus on rebuilding and resolving any issues.
What Does Business Interruption Insurance Cover?
The most common business interruption insurance cover includes:
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Your income or profits that you would have earned if the business interruption had not occurred.
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Rent for which you are still responsible during the interruption period, or loss of rental income if you own the premises.
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Wages that are owed for the duration of the interruption.
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Additional expenses incurred during this time.
Any loss of income or profit remburments will be based on your most recent financial statements.
Business Interruption Insurance Tips
It's important to remember that the coverage only applies to interruptions exceeding 48 hours. In addition, the policy is commonly an extension to property all-risk insurance or equipment breakdown insurance.