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How Can Business Interruption Insurance Help Mitigate Revenue Loss After a Disaster?

10/8/2022 (Permalink)

How Can Business Interruption Insurance Help Reduce Revenue Losses Following a Disaster?

When it comes to business insurance, there are two basic types: property insurance and business interruption insurance. If you're thinking about purchasing a new policy or upgrading your current one, it's important to understand how these two policies work together.

One of the most critical coverages any business owner needs is business income coverage. 

Business income coverage is a critical coverage type for any business owner in Gardner, KS to have. It protects you from loss of income during a period where you're unable to operate your business because of a covered loss. – for instance, if your building were damaged by fire, resulting in a shutdown that lasted longer than 30 days, and/or caused more than $1 million in damage to the property. This would likely be a covered loss under your policy—and could trigger an immediate payment from the insurer on this claim.

If no business interruption coverage is in place at the time of a disaster, your revenues could take a significant hit from necessary repairs and restoration work. In many cases where businesses do not have sufficient funds set aside for such emergencies, operations themselves can become difficult. It’s important to maintain sufficient coverage to protect against being caught in either of these situations.

For example, if there's a fire at your office and you need to shut down for months to deal with fire restoration, business income coverage would provide an income stream to help pay bills. This way, you don't have to worry about paying rent or the other operating costs associated with running your business while you're out of commission. You can also get additional benefits through business interruption insurance that may cover some of the lost revenue from having employees miss work because they were evacuated during a fire. 

Business interruption insurance can save your business after a disaster.

If you own a business and have property insurance, chances are you're covered for fire damage. However, if your business needs to shut down while repairs are made, you still need to pay the bills. Business interruption insurance can help with that. It covers lost revenues during the time when your building is being repaired or rebuilt—and it's an essential part of any business insurance policy.

Business income coverage is different than property insurance in several ways: it protects against loss of revenue rather than loss of property; it has its own policy limit (often separate from other types of coverage), and it has its own deductible (another difference).

Business income coverage is a critical component to any comprehensive business insurance strategy as it can help mitigate revenue loss after a disaster. 


Business interruption insurance is a critical component of any business owner’s coverage. It protects you from loss of income when your operations are disrupted because of a covered loss. Business income coverage can provide an income stream to help pay bills during this time and allow you to get back on your feet after the disaster.

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