When your business stops, your income should not have to stop with it. Physical damage is only part of the loss; the financial impact may continue every day operations are reduced or suspended.

Business Interruption coverage—also called Loss of Income coverage—may compensate a business for lost revenue and ongoing expenses when operations are disrupted by covered physical damage.

What Business Interruption May Cover

Lost net income based on prior financial performance
Continuing operating expenses such as rent, payroll, utilities and loans
Temporary relocation costs
Extra expenses to resume operations faster
Some lost business opportunities during downtime

When a Claim May Apply

A business may qualify after hurricane or wind damage, covered water damage, fire or smoke damage, or structural damage that prevents normal operations. A complete shutdown is not always required; partial interruptions can matter too.

How the Claim Works

A covered loss occurs

Physical damage must be tied to a covered cause of loss.

Operations are affected

The damage causes a full or partial suspension of business activity.

Financial records are reviewed

Profit-and-loss statements, tax returns, sales reports and payroll records help establish the loss.

The loss is calculated

The projected income without the loss is compared with actual performance and continuing expenses.

A settlement is negotiated

The initial carrier calculation may not include the full financial impact.

Why These Claims Are Often Underpaid

Carriers may rely on conservative projections, dispute how long the business should have been interrupted, omit revenue streams or expenses, or use formulas that reduce the claim value.

Common Mistakes

Not filing a Business Interruption claim at all
Accepting the first calculation without review
Providing incomplete financial documentation
Underestimating the interruption period
Leaving out continuing expenses

Business Interruption vs. Property Damage

Property Damage Claim

Covers physical repairs to the building or property, subject to the policy.