Business interruption insurance provides crucial coverage that replaces lost income due to events disrupting your operations, such as fires or natural disasters. Rather than being sold as a standalone policy, this insurance is typically added to a property or casualty policy or included in a comprehensive package.

The coverage compensates for the loss of net profit and ongoing expenses related to standing charges, as well as any reasonable increased costs incurred to maintain business operations and prevent a decline in turnover. Selecting an appropriate indemnity period is vital, ensuring your business can recover and return to its pre-loss state following any financial disruption.