The Top 4 Reasons to Consider Business Interruption Insurance
Insurance Neighbor • April 4, 2023
1. Heavy storms in your area are becoming more common.
Wind, snow, and ice can seriously damage a business facility. To determine the best business interruption policy, read the “named perils,” which typically include fire, wind damage, falling objects, lightning, and theft. Some perils are excluded, typically including earthquakes, floods, infestations, or pandemics, and others. Every policy is different, and our local agent can help you choose the policy that best suits your business and location.2. Your business would not survive if shuttered for a month or more.
If your facility has been seriously damaged, to the point where you cannot produce your product or service, your rainy day fund could be depleted within a few weeks. The costs associated with paying employees, taxes, and keeping all leases current adds up fast, and business interruption insurance can help you keep your most valued employees, move to another facility, and keep your payments current, for a specific period of time – and help your business continue to operate.3. Your business relies on digital information to operate.
Few businesses exist that operate on a cash basis. If your business relies on digital devices to store customer or client data, process payments, and communicate internally and externally, a cyber incursion can be a serious setback. The risk of a privacy or security breach has never been higher, and when it happens, the entire operation comes to a halt, unable to function normally until the issues are resolved. An evaluation of your business operation will determine what type of policy to put in place, and the limits that make the best sense. This insurance will reduce the impact on your day-to-day operations after a cyberattack.4. When a shutdown happens, business interruption insurance softens the blow.
If your business must shut down due to a natural disaster or other covered peril, rather than facing extensive financial losses, the basics are covered to continue to operate, or make the transition to another facility. Your business will be able to recover the amount of income you would have earned during a closure, pay your employees, pay for the cost to relocate, and make timely payments on loans or leases. While the challenges you face are stressful and difficult, this insurance will definitely make the transition easier, and far less expensive.What is the best type of business interruption insurance?
Recent Posts

By Insurance Neighbor
•
August 16, 2026
Summer is peak season for recreational vehicles. Whether you're out on the water with a boat, exploring the country in an RV, or hitting a trail on an ATV, August brings some of the highest usage of the year for these vehicles, and that makes it a great time to make sure your insurance coverage is in order. Many people assume their standard auto or…

By Insurance Neighbor
•
August 1, 2026
Every August, millions of families prepare for back-to-school, and for households with a newly licensed teen, that checklist includes an important question: Is your auto insurance ready? Adding a teenager to your auto insurance policy is one of the most significant coverage changes a family can make. Teen drivers are statistically among the highest-risk drivers on the road, which affects both your coverage needs and…

By Insurance Neighbor
•
July 19, 2026
Whether your business relies on a single work truck or a fleet of delivery vans, the vehicles you use for business purposes likely need more than a standard personal auto insurance policy. Commercial auto insurance is designed to cover vehicles used for business operations and can provide protections that personal policies typically do not. Understanding the difference between the two can help business owners avoid…

By Insurance Neighbor
•
July 16, 2026
If you rent your home, apartment, or condo, you may assume that your landlord's insurance policy protects your belongings. Unfortunately, that's a common misconception—and a costly one. A landlord's insurance policy typically covers the physical structure of the building but not the personal property of the people who live in it. Renters insurance is designed to fill that gap, and it's often more affordable than…

By Insurance Neighbor
•
July 4, 2026
When most people think of cyberattacks, they picture large corporations making headline news after a major data breach. But the reality is that small businesses are frequent targets of cybercriminals—and often less prepared to handle the financial and operational fallout. Cyber liability insurance is designed to help businesses manage the costs associated with data breaches, ransomware attacks, and other cyber incidents. If your business stores…

By Insurance Neighbor
•
July 1, 2026
Rideshare driving has become a popular way for millions of Americans to earn extra income. Whether you drive for a transportation network company full time or just on weekends, it's important to understand how your auto insurance applies—and where it may fall short. Many drivers are surprised to learn that their personal auto insurance policy may not cover them while they're working on a rideshare…

By Insurance Neighbor
•
June 18, 2026
If you own a small or medium-sized business, you've probably heard the term "Business Owner's Policy" or BOP. It's one of the most common types of commercial insurance, but many business owners aren't sure exactly what it includes — or whether it's the right fit for their needs. Here's a clear breakdown. What Does a BOP Include? A Business Owner's Policy typically combines three core…

By Insurance Neighbor
•
June 16, 2026
School is out, the days are longer, and millions of Americans are gearing up for summer road trips. Before you load up the car and point it toward the horizon, it's worth taking a few minutes to understand what your auto insurance covers — and where the gaps might be. Does Your Current Coverage Travel With You? Good news: your personal auto insurance generally follows…

By Insurance Neighbor
•
June 4, 2026
For many businesses, summer is the busiest and most profitable time of year. From restaurants and retail shops to contractors and event venues, the warmer months bring increased foot traffic, more employees, and new operational challenges. That also means new risks — and it's worth making sure your business insurance is ready for the season ahead. Increased Foot Traffic and Premises Liability More customers on…

