What is business interruption insurance?

Why do you need business interruption insurance?

Here are a few reasons why you might need business interruption insurance:

• It stabilizes finances, aids in covering payroll, and maintains mortgage, loan, or lease payments while your business is temporarily down due to an unplanned interruption.  

• It provides peace of mind when you’re faced with the difficulty of dealing with recovery following a closure without a source of income.

• It helps cover the costs of temporary relocation due to damage incurred from a covered event.

• Save money. Your property and liability risks are bound in a single package with premiums that are typically less expensive than purchasing and renewing each coverage individually.

• For example, just like when you order a meal at a fastfood restaurant, when you buy the meal deal, it's cheaper than if you buy your sandwich, drink, and fries individually.

• Simplifies the insurance process and makes it easier for you to manage multiple coverages in one business owner’s policy.

• It’s invaluable to have the peace of mind that you are properly protected through a range of coverages included in one business owner’s policy so you can focus on growing your business.

What risks does business interruption insurance cover?

Business interruption insurance covers a wide range of risks your business may face. Here are just a few examples:

• A food truck operator was prevented from serving customers for a month as a result of a required engine repair. 
  

• A coffee shop was unexpectedly forced to close for two weeks during a necessary plumbing repair. 

• A retail store damaged during a fire could require major renovations and uncertainty about when reopening will be possible.

• If cyber criminals hack a medical outpatient facility (ex., a dentist office) and confidential patient information is compromised, the business owner would be liable.

• If a clothing boutique stores its employees’ social security numbers in the cloud and that data is compromised, the store owner is at risk of legal action by the employees.

• If a logistics company is victim to ransomware after an employee unknowingly downloads a suspicious attachment, the financial burden can be heavy without cyber insurance.