When a catastrophe strikes, your operations—and your revenue potential— may be put on hold for weeks. Without business income insurance, you might not be able to make payroll or other important payments.
Business income insurance—also called business interruption insurance— is intended to sustain your company after a covered event by providing supplemental income. It is typically triggered by direct damage to your property, but coverage can be written to insure against external events, such as supply-chain failures and lack of access to your business due to closures along your road.
Another component of this insurance is business income with extra expense. This extended coverage gives your business money for equipment rentals, overtime costs, and other necessary expenses to get you back up and running. This can also help if you need to move to another space and could help you avoid devastating restart expenses.