Business interruption insurance is a type of insurance that protects your business from loss or damage due to events such as fire, flood and earthquakes. It also covers a number of other threats that could disrupt operations and cause you to lose money. This guide will explain why business interruption insurance is essential for many businesses, including yours. We'll also cover the different types of coverage available so you know what's best for your company.

The Importance of Business Interruption Insurance

Business interruption insurance is a type of property insurance that covers losses to your business if you are unable to operate because of damage or destruction to your property. It may also be referred to as business income coverage, loss of income insurance and other names.

Business interruption insurance provides financial protection against a variety of perils that could cause your company's operations to stop temporarily, such as fire and natural disaster. Depending on the type of policy purchased, business interruption coverage can offer reimbursement for lost profits incurred during an interruption as well as payments for additional expenses related to maintaining operations during an extended stoppage in service (such as rent on office space).

Understanding the Different Types of Business Interruption Insurance

Business interruption insurance Coverage is a form of property insurance that covers lost income and expenses resulting from the interruption of business operations. In other words, it's an insurance policy that protects your company from the financial impact caused by physical damage or loss to your building or other property.

If you own a small business, this type of policy may be able to help you recover from sudden disruptions like natural disasters (such as hurricanes), fires and electrical failures. Business interruption policies also provide coverage for machinery breakdowns; theft or vandalism; malicious mischief such as riots or terrorism; labor strikes; legal judgments against you (for example: wrongful death lawsuits); earthquakes/tsunamis/volcanic eruptions/landslides etcetera.

Business interruption insurance coverage

What You Can Do if You Are Denied Coverage

If you are denied business interruption coverage, the first thing to do is talk to your insurance agent. Find out why they think it's not a good idea for you to have this type of policy. Make sure that you understand their reasons for denying coverage and try to figure out if there might be any way around them. If so, ask your agent if they can send a letter explaining why they believe you should be covered by this type of policy (and also include any evidence that supports why).

If the insurance company still refuses coverage, contact them again to let them know that you have been denied business interruption coverage. Ask if there are any other types of policies that might provide some protection for your business. If not, ask how long it will take for you to receive payment for the claim (if one is filed).


Business interruption insurance is an important part of your business's coverage. It can be a lifesaver in the event of a disaster, but it is also useful for everyday mishaps. If you are denied coverage or need help understanding what this type of insurance covers, contact us today so we can assist with finding the right solution for your business needs!