When it comes to insurance policies for your business, you need to have adequate protection. If you do not have business interruption insurance, you may not be fully covered in the case of emergencies.

What Does Business Interruption Insurance Cover?

The point of business interruption insurance is to keep your business alive if you have to shut down for any reason. For instance, if your business is halted because of a fire or natural disaster, you may not have the incoming profit to pay for necessary expenses, to move to a temporary location or to pay your employees. The insurance covers business expenses.

When Does Business Interruption Insurance Kick In?

As with any policy, there are rules and exceptions. For most interruption policies, it only covers lost income when your business has to stop due to a physical loss. For instance, fire or other natural disasters might cause you to shut down your business. Sometimes, if a nearby business suffers damage that affects yours, you may also be able to recover lost income. Standard options, however, do not typically cover viruses or pandemic closures. For pandemics, there are specific options to add to your business policies.

Without business interruption insurance, your company could face immense loss if you have to close for any reason.