business interruption insurance

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Business Interruption Insurance

An insurance policy that provides coverage in case some event causes a business to relocate or temporarily close. For example, if an office floods and becomes unusable, business interruption insurance will replace the profits the company would have made during the time it is closed and also will cover its operating expenses. It is also called business income coverage.

business interruption insurance

Insurance that provides benefits if business is interrupted while repairs are conducted after an insurable loss.
References in periodicals archive ?
Risk managers are buying within their business interruption policies specified replacement limits for longer-term outages on a per-unit basis with daily or monthly limitations on the amount that can be claimed.
A possible answer: Business interruption policies don't usually cover expediting expenses except to the extent that they reduce the loss.
Standard business interruption policies promise to pay for business income lost when operations are suspended during the period of restoration.
Some business interruption policies include endorsements for loss of utilities, says Larsen.
Companies might try to protect their income by requiring their suppliers or manufacturers to name them as additional insureds on their business interruption policies, but that may not do the trick.
Business interruption policies return no more than was actually lost--"actual" meaning the difference between the probable experience of the business had no loss occurred and the actual earnings during the period of interruption.
Some say if a pool isn't organized, insurers will reconsider their appetite for certain classes of business, such as large office complexes and landmark buildings or business interruption policies.
Munich Re said it expected a hit in the medium hundreds of millions of euros from Sandy, adding that it currently did not look like so-called contingent business interruption policies, for companies not directly hit by the storm, would play a big role.
Standard business interruption policies cover loss resulting from the total or partial interruption of business caused by damage to or destruction of real or personal property on premises occupied by the insured.

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