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Business Interruption Insurance

What is Business Interruption Insurance?

Business interruption insurance covers a financial loss that a business experiences due to an unexpected event that interrupts its normal operations. These events may include natural disasters, fires, thefts, network security breaches, and similar incidents that can cause damage to a business's property or disrupt its operations. With business interruption insurance, a company can receive financial compensation to cover lost income and other expenses that arise from the interruption. This can include lost revenue, ongoing expenses such as rent and payroll, and the cost of relocating the business temporarily or permanently. The goal of the insurance is to help a business recover as quickly as possible after an interruption so that it can resume normal operations and maintain its financial stability. Business interruption insurance is typically purchased as part of a property or cyber insurance policy, and the interruption coverage is typically tied to those underlying events.