Lost net income
The profit the business would have earned during the interruption.
Business Insurance
Business interruption covers the income, not the building.
Property insurance rebuilds the premises. Business interruption pays the rent, the payroll and the profit while that happens.
Business interruption, also written as business income cover, is the part of a commercial programme that decides whether a business survives a serious loss. Property cover repairs the damage; it does nothing about the months of trading you lose while the repair happens, or the fixed costs that continue regardless.
The indemnity period is the setting that matters
The indemnity period is how long the policy will keep paying. Twelve months is a common default and it is frequently too short. Permitting, contractor availability, long-lead equipment and re-fitting a specialist premises all stretch a timeline well past a year.
Think in terms of restoring the business rather than repairing the building. A restaurant is not trading again the day the kitchen is finished — there is re-permitting, restaffing and rebuilding custom. The indemnity period should reflect that whole arc.
It only triggers on a covered property loss
Business interruption is not standalone. It responds when a covered peril damages your property and that damage stops you trading. A downturn, a lost contract or a supplier failing does not trigger it.
Extensions do exist and are worth knowing about. Contingent business interruption responds to damage at a key supplier or customer. Civil authority cover responds when access is denied because of nearby damage. Utility interruption covers loss of power or water from a covered event off site.
Extra expense is the other half
Extra expense pays the additional costs of staying open — temporary premises, hired equipment, overtime, expedited shipping. For many businesses spending to keep trading beats claiming for being closed, and this is the cover that funds it.
Some policies bundle income and extra expense under one limit; others separate them. Knowing which structure you have matters when you are deciding, in the first week after a loss, how aggressively to spend on staying open.
What it covers
The parts of a business interruption insurance policy
Continuing expenses
Rent, loan payments and other fixed costs that carry on regardless.
Payroll
Keeping staff through the closure, which is often the point of the cover.
Extra expense
The cost of staying open — temporary premises, hired equipment, overtime.
Contingent interruption
Losses caused by damage at a key supplier or customer rather than your own site.
Civil authority
When access to your premises is denied because of nearby covered damage.
Working with us
What we do differently
We are an independent agency, so we place your business interruption insurance across several carriers rather than fitting you to one company's product. That means a genuine comparison, and someone to call who is not a call centre.
- Set the indemnity period against restoring the business, not repairing the building
- Review the income figure annually — it dates faster than property values
- Check whether income and extra expense share a limit or have separate ones
- Ask about contingent, civil authority and utility interruption extensions
Common questions
Business Interruption Insurance, answered
What is the difference between business interruption and business income cover?
They are two names for the same thing. Business income is the more common wording on modern policy forms; business interruption is the older term. Both replace lost earnings and continuing costs after a covered property loss.
How long should my indemnity period be?
Long enough to repair, re-equip, re-permit and rebuild trade. Twelve months is a common default and often too short, particularly for specialist premises like commercial kitchens or clinics.
Does it cover a downturn in trade?
No. It only responds where a covered peril damages property and that damage stops you trading. A lost contract or a slow quarter is not a trigger.
What if my supplier burns down, not me?
That is contingent business interruption, an extension rather than standard cover. If your business depends on one or two key suppliers or customers, it is worth asking about specifically.
What is extra expense?
The additional cost of staying open rather than closing — temporary premises, hired equipment, overtime, expedited shipping. For many businesses it is more valuable than the income cover itself.
Related cover
Often arranged alongside this
Commercial Property Insurance
Property cover repairs the building and replaces the contents. Business interruption replaces what you could not earn while that happened — and it is usually the larger number.
Read moreBusiness Insurance
A shop, a contractor and a software firm face entirely different risks. We place commercial cover across multiple carriers rather than fitting you to one company's template.
Read moreInland Marine Insurance
Commercial property cover stops at your premises. Inland marine covers everything your business takes with it.
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