Business Income or Interruption insurance provide coverage for the loss of income that follows a loss to property (business personal property or buildings) that is also covered under a package or businessowners policy. Example:

• A businessowners policy that covers a fire damaging your business personal property prevents you from operating your business as profitably as it was prior to the loss. The business interruption/income insurance picks up the income lost resulting from the fire.

Lost Business income that is covered includes:

• Profits
• Operating Expenses
• The costs that increase in order to maintain previous income

The difference between business interruption/income insurance and property insurance is:

• Property insurance covers the direct physical loss to the property that was damaged.
• Business income/interruption insurance pays for the resulting loss of income because of the loss of the use of the covered property (business personal property or buildings).

A business interruption insurance policy has a coverage limit. That limit is the maximum amount that will be paid to you by your insurer for a covered claim. Financial losses above that coverage limit will be your responsibility. That makes it vitally important to secure the coverage limits that are the best fit for your business. Discussing your specific circumstance with an independent insurance agent is an effective way of determining the right coverage for you.