Business interruption insurance may help address certain lost income or continuing expenses after a covered event interrupts operations. The policy wording controls the trigger and calculation.
Review the important terms
Check the covered event, waiting period, period of restoration, revenue definition, payroll treatment, extra expense coverage, sublimits, and exclusions.
Prepare before a loss
Keep financial statements, sales records, payroll data, supplier details, contracts, and continuity plans organized. Update the policy when revenue, locations, products, or staffing changes.
Claim preparation
Separate normal operating expenses from extra expenses, record the dates of interruption, and preserve backups of financial records.
Next step: ask how the policy calculates lost income before you need it. This article is general educational information only.