Business Interruption Insurance (also called Business Income and Extra Expense Insurance) is designed to cover lost income when you have to close your business temporarily because of events beyond your control. It’s an extra layer of protection that goes beyond more common insurance policies like Property Insurance.
Business Interruption policy can provide coverage for three things:
- The profits you would have earned if the incident did not occur.
- Normal operating expenses, even though the business is temporarily closed. This includes your employees’ wages so you can keep them on staff during the interruption.
- The expense of moving your business to a temporary location. This might include both moving and rent costs