Business interruption Insurance (BI)
BI is an insurance coverage that is usually sold along with property insurance and reimburses income lost if the business is halted due to direct physical loss or damage, such as:
- One caused by a fire or a natural disaster
2 . Standard business interruption insurance does not
reimburse policyholders if the business is closed due to a pandemic.
This type of insurance also covers operating expenses, a move to a temporary location, if necessary, payroll, taxes, and loan payments.
In rare cases, business interruption insurance can apply if a civil authority shuts down a business due to physical damage to a nearby business, resulting in loss to the firm.
Standard business interruption insurance does not reimburse policyholders if the business is closed due to a pandemic.