What does Business Interruption Insurance mean? Read on to discover the definition & meaning of the term Business Interruption Insurance - to help you better understand the language used in insurance policies.
Business Interruption Insurance
Most commercial property insurance policies provide coverage for business income loss by adding an endorsement to the insured's property policy. This endorsement is designed to protect the insured for losses of business income it sustains as a result of direct loss, damage, or destruction to insured property by a covered peril. Although many such clauses are in use today, a typical business income insurance clause reads as follows: "We will pay for the actual loss of business income you sustain due to the necessary suspension of your "operations" during the period of "restoration." The suspension must be caused by the direct physical loss, damage, or destruction to property. The loss or damage must be caused by or result from a covered cause of loss."
We hope the you have a better understanding of the meaning of Business Interruption Insurance.