Weather the Storm

How business interruption insurance can keep your business going in the event of a natural disaster

By: Chase Carlisle

When something such as a fire, a windstorm or another natural disaster happens, it often means your regular business operations are interrupted. When this happens, you can’t perform the work that makes your company successful, but you still need to pay bills, employees and other expenses. This is where business interruption insurance comes in.

In its simplest definition, business interruption insurance is a form of insurance coverage that works to replace the income your business loses as a result of something that disrupts your business operations, usually a fire or natural disaster. Business interruption insurance is often added to your current commercial insurance policy or included in a fully comprehensive policy. Business interruption insurance premiums are deductible as normal business expenses, and the amount payable is generally based on your company’s past financial records.

There are a few important points to remember when considering business interruption insurance and how it will work for you. When determining what coverage is needed, a business owner needs to consider the different options of coverage that are available with a business interruption policy.

One of these options is business income coverage. Business income provides coverage for the loss of income your company suffers when work is interrupted after an incident. This loss of income can also be caused by fixed costs that are still owed, such as payroll, rent, etc., even though your business isn’t able to operate. Extra expense coverage can be added to your business income coverage and provide additional coverage for expenses your company incurs during the period of restoration; these are expenses your company would not have suffered if your business were not interrupted.

Another aspect of the business income endorsement includes service interruption, which provides coverage for damages to utility services and property of service providers. Contingent business interruption is similar to service interruption, and it provides payment for loss or damage to property owned by others.

Business interruption insurance is designed to keep your company going forward, no matter what obstacles you encounter. There are numerous options available to customize your business interruption coverage to fit the needs of your company.

Business operations can be interrupted for a number of reasons. No matter where you live, there is always the chance of a natural disaster affecting your business and making it difficult for you to continue your work. When this happens, business interruption insurance can help you get back to work and give you peace of mind that your business will weather the storm.

For more information, visit Carlisle Insurance online at



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