What Is Business Interruption Insurance?
Business-interruption insurance, also called business-income coverage, can replace eligible income and continuing expenses after a covered loss interrupts operations.
It often requires physical damage to insured property, so check the trigger, limits, and waiting period. A common trigger is direct physical loss or damage to insured property from a covered cause, followed by a period of repair or restoration. The coverage can account for income the business would have earned and specified continuing expenses; it is often included in a BOP or added to commercial property coverage.
The name does not mean every disruption is insured. Check the covered-cause requirement, waiting period, period of restoration, limit, and whether the form uses actual-loss-sustained wording. Review exclusions and any separate endorsements for utilities, suppliers, civil authority, cyber events, or nonphysical disruptions.
Coverage Guides Related to Commercial Property Insurance
Sources for This Answer
- Business Interruption and Business Owner Policy. National Association of Insurance Commissioners; Background; Commercial property; Business interruption; Contingent business interruption. Accessed 2026-09-25.
- FAQ on business interruption insurance and other issues affecting California small businesses. California Department of Insurance; Business interruption trigger; COVID-19 income loss; policy exclusions; civil authority. Accessed 2026-09-25.
- What Business Income Loss Coverages Are Out There? Learn the Endorsements That Can Help with Lost Business Income. National Association of Insurance Commissioners; Top Considerations; Things You Should Know: business income, extra expense, service interruption, contingent business interruption, civil authority. Accessed 2026-09-25.
- Commercial Property and Business Income Coverage Forms in SES sample policy. Insurance Services Office, Inc.; sample hosted by SES Insurance; CP 00 10 10 12, printed pp.1–16 / PDF pp.7–22: A.1 Covered Property, A.2 Property Not Covered, E.1.b Property of Others, E.1.e Outdoor Property; CP 00 30 10 12, printed pp.1–9 / PDF pp.22–30: Business Income definition, trigger, coinsurance and restoration period. Accessed 2026-09-25.