A business interruption is usually the outcome of a serious claim. That interruption, better known as business income insurance, is one of the most important coverages in your policy. It covers the loss of income that your business will incur due to a necessary suspension of day-to-day operations as a result of a serious claim. This coverage is usually standard in most business or commercial policies. It’s important to remember that coverages can vary between carriers. Therefore, the actual limit and/or period of time provided by this coverage will usually be different between carriers, and more or less important to you than other business owners.
Extended Business Income is considered an optional coverage in most business and commercial policies. It is even more important than the initial interruption of business. Your customers and business income will not return to normal the day you reopen your doors weeks or months after a serious claim has been handled. This is where your extended business income kicks in, which provides coverage for customers and sales to return to normal once the business suspension is over. The limit and length of time for extended business income varies between carriers. Some carriers provide this coverage for an additional 30 days, while others may cover it for 90 days. It really depends on the carrier.
Please comment or email me with any questions, or for a detailed analysis of Extended Business Income and how it can make a world of difference for your business.