Business Interruption Insurance

Business Interruption Insurance in Massachusetts. Helping Massachusetts businesses find the best coverage and price since 1959.

What Is Commercial Business Interruption Insurance?

Commercial business interruption insurance is a form of coverage that helps supplement income lost due to a temporary suspension of normal business operations. The period of time it takes to recover from a loss, including inventory, merchandise, physical location and more is called the restoration period.

Also known as business income insurance, such policies cover lost income when a business temporarily closes due to a fire, natural disaster, or other covered incident. Commercial business interruption insurance is an add-on to Business Owner’s Policy (BOP) insurance or Property Insurance.

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Do I Need Commercial Business Interruption Insurance?

Every commercial business should have commercial business interruption insurance as a part of its insurance planning and risk management strategy. It’s a good idea to discuss potential loss events with your business insurance agent so you can supplement with enhanced coverage as needed.

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What Does Commercial Business Interruption Insurance Cover?

Commercial business interruption insurance covers the following:

  • Operating expenses/fixed costs like rent, mortgage, lease, or taxes
  • Payroll
  • Loan payments
  • Relocation
  • Training costs (for employees to learn how to use new equipment or machinery)
  • Cost of repairs to equipment needed to operate
  • Theft, break-in, or riot
  • Lost income due to cyber attacks that result in downtime or disable operations [Depending on coverage]

What Does Commercial Business Interruption Insurance Not Cover?

Commercial business interruption insurance does not cover:

  • Broken items (such as glass) [Typically covered under building coverage insurance]
  • Damages from flood or earthquake [Varies depending on coverage]
  • Undocumented income not on your business’s financial records
  • Shutdowns or slowdowns caused by government-issued capacity restrictions or lockdowns
  • Pandemics, viruses, or communicable diseases (such as COVID-19)
How Much Does Commercial Business Interruption Insurance Cost?

The cost of commercial business interruption insurance differs for each policy. You can calculate your gross earnings and projections (income and sales) to estimate future profits and determine the right amount of coverage. Consider what you would be paying for if you had a covered loss.

Things to consider when determining the cost of coverage:

  • Are there frequent or large industry risks?
  • How much coverage are you looking for?
  • What is your average payroll?
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Why C&S Insurance?

As trusted advisors and dedicated partners, we make it our responsibility to evaluate your full list of carrier options. We have access to national and local insurance carriers and can secure comprehensive coverage programs and competitive rates on your behalf. Our agents are the best in the field and will work with you to find the best coverage for your needs. Contact us today for more information.