What Is Business Income / Business Interruption?
Business Income coverage, sometimes called business interruption, is designed to help replace income you would have earned if a covered property loss — like a fire or storm — hadn't forced you to close or slow down operations. It can also help with continuing expenses, like rent and payroll, while you get back up and running.
Who Needs It
Any business that would suffer significant financial strain if forced to close temporarily — restaurants, retailers, healthcare offices, and manufacturers among them — can benefit from this coverage, since rebuilding after a loss often takes time.
Real-Life Claim Scenarios
Restaurant Closed After a Kitchen Fire
A kitchen fire forces a restaurant to close for repairs. Business income coverage may help replace lost revenue and cover continuing expenses like rent during the closure, subject to policy terms.
Retailer Displaced by Storm Damage
Storm damage makes a retail space unusable for several weeks. Coverage may help with lost income and extra expenses to operate from a temporary location.
Civil Authority Closure
A nearby fire forces authorities to close the block, preventing customers from reaching your store. Civil authority coverage, often included in a business income policy, may help with resulting losses, subject to policy terms.
Utility Outage Disrupts Operations
An extended power outage caused by damage to a utility's equipment forces a temporary shutdown. Service interruption coverage, where included, may help with the resulting loss.
Manufacturer Delays Production After a Property Loss
A production line is damaged and manufacturing is delayed for weeks. Business income coverage may help offset lost income while the facility is repaired.
What It May Help Cover
- Lost net income during the restoration period
- Continuing fixed expenses such as rent, utilities, and salaries
- Extra expenses to operate from a temporary location
- Civil authority closures tied to nearby covered property damage
- Service interruption from a covered utility outage, where included
Coverage Limitations
Business income coverage generally requires a direct physical loss to covered property to trigger a claim, and it typically applies only during the policy's defined 'period of restoration.' It is usually sold alongside or as part of a commercial property or BOP policy, subject to underwriting and specific terms.
Industries That Commonly Need This Coverage
What You'll Need for a Quote
- Estimated monthly revenue and operating expenses
- Continuing expenses that would persist during a closure
- How quickly you could resume operations after a loss
- Whether a temporary location would be feasible
- Desired restoration period / coverage duration
- Prior business interruption claims, if any
Upload Insurance Requirements for Review
Have a certificate request, lease clause, client contract, or vendor requirement tied to business income / business interruption? Upload the document and a Casurance specialist can review the requested limits, wording, and additional insured language.
Frequently Asked Questions
Related Coverages
Get a Business Income / Business Interruption Quote
Tell us about your business and a Casurance specialist can help you review Travelers business income / business interruption options, subject to underwriting approval and coverage availability in your state.
Coverage described on this page may help address certain risks common to this coverage line, subject to policy terms, conditions, exclusions, and underwriting approval. Coverage availability, limits, and pricing vary by state and are not guaranteed. This page is for informational purposes only and is not an offer of coverage or legal advice.
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