When the Doors Close, the Bills Don't — This Replaces the Income.
Income protection for the time your business can't operate
Business interruption insurance, also called business income coverage, replaces the income a company loses when a covered property loss forces it to suspend or curtail operations. It pays the net income the business would have earned plus the continuing expenses that don't stop when the doors do — payroll, rent, loan payments, taxes, and utilities — throughout the period reasonably required to rebuild and reopen.
It is not usually a standalone policy; it rides on the commercial property policy or businessowners policy and is triggered by the same covered perils. That link is also its defining limitation: without covered physical damage, there is no business interruption claim.
What Business Interruption Insurance Covers
Coverage centers on lost income and the expenses that continue during a shutdown, with several important extensions:
Net Income & Continuing Expenses — Replaces the profit the business would have earned and pays ongoing costs like payroll, rent, taxes, and loan payments during the period of restoration.
Extra Expense — Covers the added costs of staying open or reopening faster, such as a temporary location, expedited equipment, or extra labor.
Extended Business Income — Keeps paying after repairs are done and the doors reopen, until revenue climbs back to its pre-loss level.
Contingent Business Interruption — Responds when physical damage at a key supplier or major customer, rather than your own premises, disrupts your income.
Civil Authority — Covers lost income when a government order bars access to your premises because covered-peril damage struck nearby property.
Utility Services (Time Element) — Extends coverage to income lost when covered damage to a utility's equipment cuts off power, water, or communications.
What It Does Not Cover
The physical-damage trigger is the source of most exclusions:
Losses with no direct physical damage from a covered peril
Pandemic, communicable disease, and virus-related closures
Power or utility outages that don't damage your property, unless a utility endorsement is added
Perils the underlying property policy excludes, such as flood or earthquake
Income lost during the waiting period, and losses beyond the limit or restoration period
Who Needs Business Interruption Insurance
Almost any business with premises and revenue at risk benefits, especially:
Restaurants, retail, and hospitality with high fixed costs
Manufacturers and warehouses dependent on hard-to-replace equipment or build-out
Businesses reliant on a single location or a key supplier or anchor customer
Operations in catastrophe-prone areas facing long rebuilds and civil-authority orders
Tenants and owners whose leases or lenders require the coverage
How Coverage Is Structured
Business interruption is time-element coverage, measured over the period of lost operations rather than by property value:
It rides on the property policy and is scoped to the same covered perils and property
The standard form pays the actual loss sustained, subject to the limit, based on a business income worksheet
The period of restoration runs until the property should reasonably be repaired and operations resumed, commonly capped at 12 months and extendable by endorsement
A time deductible — often 72 hours — delays the start of coverage without shortening the restoration period
Limit options include coinsurance, agreed value, monthly limit of indemnity, and maximum period of indemnity
Real-World Claim Examples
A kitchen fire closes a restaurant for five months, and the policy pays lost profit, rent, and payroll through the rebuild
A hurricane leads the city to bar access to a shopping district for ten days, triggering civil authority coverage
A furniture maker's sole fabric supplier suffers a covered fire, and contingent business interruption replaces the lost income
Permitting and supply-chain delays push a rebuild past twelve months, requiring an extended restoration period
Why Proper Placement Matters
The claim only pays in full when the limit and terms match the real exposure, so placement turns on:
Setting the limit from an accurate, current income worksheet — the most common shortfall
Extending the restoration period, since real rebuilds often exceed twelve months
Adding enough extended business income days, since revenue rarely snaps back on reopening day
Adding contingent business interruption and utility-services coverage where those exposures exist
Choosing agreed value to avoid a coinsurance penalty from an outdated worksheet
Regulatory & Contract Context
Business interruption is not required by statute, but it is frequently required by contract — lenders and mortgagees often require property and business income coverage to protect debt service if operations halt, and landlords and major customers may require it as well. It is regulated as part of commercial property insurance under each state's code, with forms filed and approved by state insurance departments, and post-pandemic many insurers clarified virus exclusions and, in some states, offered optional add-ons.
Our Approach
At Cory Washington & Co., we build business interruption coverage from a realistic view of how long you'd actually be down and what it truly costs to stay afloat — sizing the limit to current revenue, extending the restoration period for real-world rebuild timelines, and adding extended, contingent, and utility coverage where your operation needs them. We coordinate it with your property program so the two respond as one. We also insure related exposures, including commercial property, equipment breakdown, and general liability.
Our goal is income protection that carries the business all the way back to normal — not a limit that runs out mid-rebuild.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
Frequently Asked Questions
How do I get business interruption insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate business interruption insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
How much does business interruption insurance cost?
It depends on your exposure. Business interruption insurance is priced on factors like your industry, size, prior claims, and the limits and deductibles you select — so two businesses rarely pay the same. We shop your account across competing carriers and present the trade-offs in plain English.
Who needs business interruption insurance?
Requirements vary. Business interruption insurance may be mandated by statute, or required under your contracts, leases, or loan agreements — and in many cases it is simply prudent given the risks involved. We look at your specific obligations and exposures, then recommend the coverage and limits that fit.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.