Business Interruption Insurance
Business interruption insurance replaces lost income and covers extra expenses when a covered property loss (fire, water damage, equipment failure) forces your operations to stop or slow down. The coverage period, waiting period, and calculation method vary significantly by policy. Extended period of indemnity language matters for businesses with long recovery timelines or customer re-acquisition periods. Standard forms often default to 30 days, which is rarely enough for a serious loss. We review BI limits against your actual revenue exposure and recovery timeline. Contact us to review your program.
Where business interruption coverage falls short
The biggest gap in most BI policies is the coverage period. Many standard forms restore income for up to 12 months after a loss. If your business takes 18 months to rebuild and reopen, the last six months of lost income come out of your pocket. We negotiate extended period of indemnity provisions to close that gap.
Contingent business interruption is another area most policies handle poorly. If a key supplier or customer suffers a loss that disrupts your revenue, contingent BI covers your lost income. Most policies include it with low sublimits unless you specifically negotiate higher coverage.
Extra expense coverage matters for businesses that need to operate during recovery. Renting temporary space, expediting repairs, or shipping from alternate facilities all cost money that standard BI doesn’t always cover adequately. We review the actual recovery scenario for your business and structure the coverage around it.
