Business Interruption Insurance

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The Business Interruption Insurance is also called as Business Income Protection Insurance. Its a type of Insurance which covers the loss of Income which the Business Suffers due to a disaster. The loss of Income Covered may be due to the disaster related closing of the business or due to the time taken in rebuilding the Business after a disaster.

The Business Interruption Insurance Differs from the property Insurance which covers only the physical damage to the property of the business. The additional Coverage of the Business Interruption Policy also covers the ncome which would've been earned had there been no such disaster. This coverage is available for all the types of businesses as this aims at putting the business in the same Financial Position it would've been had there been no disaster or calamity.

This policy usually is not sold as a stand alone policy and it is sold along with the Property Insurance of the Business or sometimes along with the Business owner's policy. The Insurance company will compensate the policy holder on account of the lost income if and only if the cause of loss is mentioned in the policy.

A Businees Interruption Insurance Policy typically covers the following :

• Profits 
• Fixed costs
• Temporary Location
• Additional Expenses incurred while the property is being repaired