What Insurance Covers Business Shutdowns?

Business interruption insurance pays for a shutdown only when covered physical damage, such as a fire or storm, forced you to close. It's usually part of a commercial property policy or businessowner's policy (BOP), not a standalone product.

If you close for a reason that didn't damage property, you usually can't claim under this coverage. A fire at a key supplier's site is a separate risk, covered only if you add contingent business interruption.

When you compare quotes, check the waiting period before payments start, how long the restoration period runs, which expenses count, and any sublimits. Ask how a partial shutdown is handled.