Business interruption insurance (BII) serves as a vital financial safety net, designed to protect the earning power of a company when unforeseen disasters force a temporary closure. While commercial property insurance focuses on physical repairs, BII addresses the "time element" of a loss, replacing lost net income and covering ongoing fixed costs like rent, payroll, and taxes that do not stop just because the doors are closed.
: Compensation for net profit that would have been earned based on prior financial records. business interruption insurance
: Reimbursement for costs incurred to minimize the disruption, such as renting a temporary workspace or expediting equipment repairs. Triggers and Limitations What Is Business Interruption Insurance? Business interruption insurance (BII) serves as a vital