Income protection when disaster strikes

Business Interruption Insurance

Business Interruption Insurance (also called Business Income coverage) replaces lost income and pays ongoing expenses when a covered event — a fire, storm, or other disaster — forces your business to close temporarily. It's often the difference between surviving a shutdown and going out of business.

Who needs Business Interruption?

Any business that would suffer financially from a closure
Businesses with high fixed costs (rent, payroll, loans)
Retailers and restaurants
Manufacturers dependent on specific equipment
Service businesses with physical locations
Businesses in areas prone to natural disasters

What's covered

Lost Net Income

The profits you would have earned if the covered event hadn't occurred.

Fixed Operating Expenses

Ongoing costs like rent, utilities, loan payments, and insurance that continue even when closed.

Employee Wages

Payroll to retain key employees during the closure period.

Temporary Location Costs

Extra expenses to operate from a temporary location while your main site is repaired.

Extended Business Income

Continued coverage as you rebuild your customer base after reopening.

What's not covered

Closures not caused by covered property damage
Pandemic-related closures (usually)
Utility failures originating off-premises (unless added)
Income lost due to undamaged roads being blocked
Losses exceeding your coverage period
Closures due to government order (unless added)

Examples by industry

Health & Beauty

A fire closes your salon for two months; business interruption replaces the lost income and covers payroll while you rebuild.

Food & Restaurants

A kitchen fire shuts your restaurant down for weeks; business interruption covers lost revenue and ongoing bills.

Cleaning & Maintenance

A flood at your facility halts operations; business interruption replaces the income you lose during the closure.

Professional Services

A fire makes your office unusable; business interruption covers lost billings while you relocate.

Retail & E-commerce

Storm damage closes your store during peak season; business interruption replaces the lost sales income.

Transportation

A fire disables your dispatch hub and fleet; business interruption covers revenue lost during the downtime.

Technology

A disaster forces your office offline; business interruption covers the income lost while you recover.

Home Services

A shop fire stops your jobs for a month; business interruption covers lost income and payroll.

Creative & Media

A flood shutters your studio mid-project; business interruption replaces the income lost during the closure.

Real Estate

Fire damage closes your brokerage office; business interruption covers lost commissions and operating costs.

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Part of the Knack guide

Learn Business Interruption alongside every other coverage in our full guide.

Open in the full guide

Related coverages

Often purchased together

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