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Business Interruption Insurance

Opinions expressed by Entrepreneur contributors are their own.

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.