Fine Print Guide

Most businesses start here · Business interruption

Business income insurance

Pays the profit you lose and the bills you still have, like rent and payroll, while your business is closed or slowed down by covered physical damage.

Who it's for
Any business that would struggle to pay its bills during a closure after a fire or storm.
Is it required?
No.

Usually covered

  • Lost net income during the repair period
  • Ongoing expenses like rent, loan payments and payroll
  • Extra expenses to keep operating, like a temporary location
  • Losses when authorities block access to your premises because of nearby damage

Usually not covered

  • Closures without physical damage to property, such as most pandemic closures
  • The first 72 hours in many policies, the waiting period
  • Closures caused by excluded causes, like flood if you have no flood cover
  • Losses from a supplier's closure, unless you add dependent property coverage

Real-life examples

A fire closes your bakery for two months.

Usually covered

Pays your expected profit and continuing bills for those two months, after the waiting period.

A state order closes your business during an epidemic.

Usually not covered

Business income requires direct physical damage to property. Most courts found that closures without physical damage weren't covered.

Check your own policy

Find these on your policy or declarations page, or ask your agent:

  • The limit, or the number of months covered
  • The waiting period
  • Civil authority and dependent property coverage
  • Extended period after reopening while customers return

Not sure where to look? See how to read your policy.

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