Lost Income Has Its Own Risk. It Deserves Its Own Coverage.
From military service to legal service
Business interruption insurance is the coverage that fills that gap
What Business Interruption Insurance Actually Covers
Business interruption coverage replaces income your business loses when a covered property damage event forces a partial or full closure. If a fire, storm, or other insured peril damages your facility and you cannot operate at normal capacity while repairs are made, this coverage steps in to replace the revenue you would have otherwise earned during that period.
Coverage typically includes:
- Lost net income based on your historical financial performance
- Ongoing fixed expenses that continue during the closure, such as rent, utilities, and payroll
- Reasonable extra expenses incurred to maintain operations or resume them faster
- A defined restoration period — the window of time coverage applies while your business returns to normal function
What it does not cover is equally important to understand. Business interruption coverage is triggered by physical property damage from a covered peril. Closures resulting from pandemics, government orders without direct property damage, or voluntary shutdowns generally fall outside standard policy language. Knowing what your policy does and does not cover before a loss occurs is the entire point of placing this coverage thoughtfully.
When the Disruption Isn't Yours — Contingent Business Interruption
One of the most underserved areas in commercial insurance is contingent business interruption coverage, which addresses a straightforward but often overlooked problem: your business can suffer significant income loss because of what happens to someone else.
If a key supplier is forced to halt production, a critical distribution partner sustains property damage, or a major customer's facility goes offline, your revenue can decline sharply even though your own operations are untouched. Standard business interruption policies do not respond to this scenario. Contingent coverage is structured specifically to address it.
We evaluate your supplier relationships, customer concentration, and operational dependencies as part of our risk assessment process. For businesses with meaningful exposure to third-party disruption, contingent business interruption coverage is not optional — it is a core part of a complete commercial program.
Coverage That Keeps Pace With Your Business
Business interruption coverage is one of the most time-sensitive lines in a commercial program. The limits are based on your revenue at the time the policy is written. If your business has grown since that policy was last reviewed, your coverage may be materially inadequate when you need it most.
A business that generated $2 million in annual revenue three years ago and now generates $4 million is carrying half the interruption protection it actually needs — and may not realize it until a claim is filed.
We reassess interruption coverage limits during every annual review, benchmarking them against your current revenue, expense structure, and restoration period assumptions. As your business grows, your coverage grows with it.
Ready to Have This Handled for You?
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Your Questions, Answered Clearly
Does my commercial property policy already include business interruption coverage?
Not automatically. Business interruption is typically placed as a separate coverage or endorsement, not a default component of a commercial property policy. Many business owners discover this distinction only after a loss. We review your existing program to confirm whether interruption coverage is in place and whether the limits are appropriate.What triggers a business interruption insurance claim?
A covered claim is triggered by physical property damage from a peril your policy insures against — fire, windstorm, vandalism, and similar events — that directly causes your business to lose income during a period of restoration. Closures without underlying property damage, including most pandemic-related shutdowns, do not meet the trigger threshold under standard policy language.How is the lost income amount calculated?
Carriers typically base the calculation on your historical revenue, documented through financial statements and tax records, projected forward through the restoration period. Fixed expenses that continue during the closure are also factored in. Accurate documentation of your financials before a loss is critical to a smooth claims process.What is contingent business interruption, and do I need it?
Contingent business interruption coverage responds when a supplier, vendor, or key customer sustains a covered loss that disrupts your operations — even though your own property is undamaged. Whether you need it depends on how concentrated your supplier relationships are and how much revenue depends on a small number of external partners. We assess this as part of your commercial risk review.How often should business interruption coverage limits be reviewed?
At minimum, annually. Revenue growth, new locations, expanded payroll, and changes in your supplier relationships can all affect the adequacy of your limits. A policy that was correctly sized two years ago may be significantly underinsured today. We build this reassessment into every annual review we conduct for commercial clients.
