Business Interruption Insurance can be as vital to your survival as a business as fire insurance. Many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable.

Business interruption coverage can be added to a commercial property insurance policy or included in a commercial package policy. A business that has to close down completely while the premises are being repaired may lose out to competitors. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses like electricity that continues even though business activities have come to a temporary halt.

There are several forms of business interruption coverage available depending on the needs of the business. These can be in the form of Gross Earnings, Profits or Actual Loss sustained. It is also even possible to cover the additional costs of Professional fees incurred in order to determine the loss in the event of a claim.