What is Business Interruption Insurance?

Business interruption insurance is insurance coverage that replaces business income lost in a disaster. The event could be, for example, a fire or a natural disaster. Business interruption insurance is not sold as a separate policy but is either added to a property/casualty policy or included in a comprehensive package policy as an add-on or rider.
 

Understanding Business Interruption Insurance

• Business interruption insurance is insurance coverage that replaces income lost in the event that business is halted for some reason, such as a natural disaster.
• This type of insurance also covers operating expenses, a move to a temporary location if necessary, payroll, taxes, and loan payments.
• Business interruption insurance also applies if government actions cause operations to cease temporarily, which results in a loss for a firm.

Call or visit us at californiasbdc.org or 1-800-616-SBDC

You can furthermore find here, a COVID-19 SBDC resource guide for businesses and employers to help during this difficult time.