Definition:
Business interruption insurance protects a business owner against losses resulting from a temporary shutdown because of fire or other insured peril. Generally, business interruption insurance provides reimbursement for lost net profits and necessary continuing expenses.
There are various types of business interruption coverage available. A business interruption policy that includes extra expense coverage in case you have to carry on business at a different location because of insured damage at your original place of business can be a wise business insurance investment.
Also Known As: Profits insurance, earnings insurance.
Common Misspellings: Business interuption insurance.
Examples:
If a fire on your business premises forces you to close your doors, business interruption insurance will cover your lost profits and/or earnings until you're able to reopen your business.
