Business Interruption Loss
What is a Business Interruption Loss?
Business Interruption Loss may refer to a type of financial loss that occurs due to the interruption of normal business operations. This type of loss is often caused by events such as natural disasters, fires, or other catastrophes that either cause physical damage to a business’s property or prevent the business from operating in its usual capacity. Business interruption losses can be significant, and typically include income losses, extra expenses, and any other losses associated with the interruption of normal business operations.
Business Interruption Loss in More Detail
Business interruption loss is also known as business interruption insurance, or business income insurance. This type of insurance is designed to help businesses recover financially from losses caused by interruptions in their normal operations. It covers not only physical damage to the business’s property, but also any income losses due to the interruption. The policy will typically cover the costs of setting up a temporary location for the business to operate from while repairs are being made to the original location. Additionally, it will cover any extra expenses that are incurred due to the interruption, such as additional payroll costs.
Business interruption loss can have a significant impact on a business’s bottom line. This type of insurance is essential for any business that wants to be able to quickly recover from any unexpected interruptions. By purchasing business interruption insurance, businesses can protect their finances and minimize the impact of unexpected events on their operations.
Subscribe to The Shield
A bite-sized newsletter outlining industry insights & best practices for high-growth companies.