Income Protection/Business Interruption Insurance

Why having Business Interruption Insurance is Important

Business Interruption Insurance, also known as Income Protection, covers loss of income when your business is unable to operate due to a covered event, such as fire, storm damage, or equipment failure. It helps pay for ongoing expenses like payroll, rent, and utilities during the downtime.

Coverage is typically triggered when there is direct physical damage to insured property that forces a temporary shutdown. It can also include coverage for extra expenses incurred to minimize business interruption, such as renting a temporary location. Business Interruption insurance does not cover loss due to pandemics or power outages unless specifically endorsed.

Properly calculating coverage limits based on financial records and projections is essential. This insurance helps businesses recover without losing key staff or market share and is a critical component of disaster recovery planning.