Definition: Insurance coverage that protects a business in the event of natural
disaster, fire or other extenuating circumstances that affects the
ability of your company to conduct business
When a hurricane or earthquake puts your business out of
commission for days--or months--your property insurance has it
covered. But while property insurance pays for the cost of repairs
or rebuilding, who pays for all the income you're losing while your
business is unable to function?
For that, you'll need business interruption coverage. Many
entrepreneurs neglect to consider this important type of coverage,
which can provide enough to meet your overhead and other expenses
during the time your business is out of commission. Premiums for
these policies are based on your company's income. Check with your
insurance agent or broker to find out more about coverage in your
area.