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Business Interruption Insurance

Keeping your doors (and options) open. That’s what our business interruption insurance can do for you.

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Spotlight on: Business Interruption Insurance

Business interruption insurance can help replace lost income due to an insured property loss.

If your business is unable to use its office or other commercial property after damage from a fire, storm, vandalism or other peril, business interruption coverage can help with the costs of keeping your doors open throughout the repair or rebuild process.

Business interruption insurance can free you up to focus on what really matters: resuming your business.

Why business interruption from Higginbotham?

No matter what coverage is right for you, our specialists offer deep expertise in commercial sectors, so our solutions are both customized and personalized.

Grounded in your priorities, our incredibly knowledgeable people turn uncertainty into opportunity so you can manage the challenges ahead. Our business insurance solutions are less institutional and more individual, built for the actual needs of your organization.

We start with listening and end with tailored coverage that considers the nuance of your operation and specifics of your situation. Schedule a call with one of our seasoned business interruption insurance professionals today to find out what Higginbotham can do for your peace of mind.

To learn more about how our values-based approach creates value for you and your business, click here.

Or visit our Insights page to learn more about essential business interruption insurance coverages.

Need a partner in finding comprehensive insurance? We’re here to help.

Making sure you have the most effective insurance plan can be daunting. Not with us in your corner. With our nationwide network of insurance carriers and decades of experience, we’ll get you the custom coverage you need.

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When we do have a claim, they are very responsive and quick to take action and I have always received top notch service from Higginbotham.

Debbie S.
Director of Administrative Services, Office Systems Industry

Business Interruption Insurance Coverage Essentials

In most cases, business interruption insurance can cover financial loss resulting from direct physical damage to any commercial property owned or leased by your business that is essential to your operation.

While business interruption insurance can cover property not on this list, claim eligibility is contingent on the damaged property being a critical part of your business operation.

Assuming the property that suffered damage or destruction is essential to your daily work, this coverage can help your business with a broad range of expenses while you repair or rebuild. In many cases, business interruption insurance can also help provide contingent business income during the recovery period.

Some examples of eligible commercial property include:

  • Dispatch Centers
  • Retail Stores
  • Warehouses
  • Offices
  • Shops
  • Yards

What does business interruption insurance cover?

Keeping in mind that payment eligibility depends on the agreement outlined in your specific business interruption policy, there are several ways in which this coverage can help your business running after a covered property loss.

Here are some examples of expenses typically eligible for business interruption coverage.

Rent at a Temporary Location

Perhaps the most common benefit paid by business interruption insurance, renting a temporary location is critical to helping some business owners stay afloat. This benefit is especially vital for retail businesses and restaurants that depend on their location to maximize revenue.

Relocation Costs

If your business suffers a covered property loss, business interruption insurance can pay to hire professional movers to minimize your downtime and stress if you’re forced to move to a temporary location.

Loan Payments

According to a study by the Small Business Administration (SBA), small businesses in the U.S. borrow around $600 billion dollars a year from banks and alternative lenders. Considering that 59% of all businesses have some form of commercial debt, the importance of loan payment assistance is clear. The last thing you need in the aftermath of a covered property loss is to wonder if you can pay your loans.

From financed vehicles to equipment and other assets needed for work, most businesses would be in serious trouble if they faced a repossession for non-payment. Fortunately for those with business interruption insurance, this coverage can typically make these payments for you throughout your recovery period.

Tax Payments

Regardless of your business’s current financial health, the Internal Revenue Service (IRS) still expects payment each quarter. Falling behind on business taxes can cost you in penalties, and in some cases, can even lead to legal trouble. Rather than risk facing a tax bill you can’t pay after of a covered property loss, it’s wise to carry business interruption insurance as a safety net.

In most cases, a business interruption policy can pay your quarterly sales tax and annual insurance tax obligations if you find yourself unable to generate enough revenue to do so.

Loss of Business Income

If you run a business that depends on your building’s location and setup to stay profitable, an unexpected business income loss can be financially devastating.

While a non-customer-facing business may be able to operate out of a temporary location without losing significant revenue, this is not the case for most restaurants, bars and retail stores. Being forced out of a prime location due to property damage or destruction can hurt foot traffic, putting a brick-and-mortar business in dire straits.

Also commonly known as “business income insurance,” business interruption insurance is designed to cover a loss of income suffered because of a covered property claim.

Payroll

If your business has employees, they depend on their paychecks to pay their bills.

With payroll a considerable expense a business incurs throughout the year, it’s wise to put protections in place to help weather the storm if things go wrong.

In most cases, business interruption insurance can help pay your employees throughout your recovery from a covered property loss.

Extra Expenses

While a business interruption insurance policy can cover a number of key operating expenses, we often get questions about coverage options for uncommon extra expenses.

Regardless of the nature of your operation, few businesses can operate on reduced income for long. Rather than risk getting caught without a way to pay your bills if your commercial property is damaged or destroyed, it’s wise to consider business interruption coverage to your commercial policy.

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Risk Management for Business Owners

At Higginbotham, rather than issue your insurance policies on day one and wait for renewal to provide service, our work continues 365 days a year. Our Day Two Services® give you tailored loss control support year-round set us apart from the average insurance broker.

We’re intimately familiar with the broad spectrum of risks faced by modern entrepreneurs.

And, we take the time to know you by name, need and nuance to help ensure we deliver value throughout the term of your insurance policy.

Not sure where to start? Talk to someone who wants to listen.

A great plan starts with a conversation. Let’s talk about what you need.

Talk to a Business Interruption Specialist

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