Business Interruption
Definition
Coverage that replaces lost income when a business cannot operate due to a covered property loss. Business interruption insurance pays for ongoing fixed expenses, lost net income, and sometimes extra expenses incurred to resume operations more quickly. It is typically part of a commercial property or BOP policy.
When This Matters
A fire closes your restaurant for 3 months. Business interruption coverage pays your ongoing rent, employee salaries, and the net income you would have earned.
Related Terms
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