Business Interruption Insurance, also sometimes called Business Income Insurance, is a type of insurance designed to help businesses financially recover from a situation that forces them to temporarily close or suspend operations. Business interruption insurance can be as vital to the survival of a business as fire insurance.
Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But, many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable.
Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy.
A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.
Extra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage without the purchase of business interruption insurance.
Source: Insurance Information Institute
Don’t hesitate to contact Murphy Insurance at 800 222 8711 or submit an inquiry via our Contact Us form to learn about our Business Interruption Insurance.
Supply chain disruptions, whether global or local, can impact any business. Learn why disaster planning, supplier diversification, and the right insurance coverage are essential for resilience.
Cyber insurance can help small businesses manage the impact of data breaches, ransomware, and fraud, but needs vary by business. Understanding coverage, planning ahead, and investing in employee training can help reduce cyber risk and avoid costly surprises.
Staying ahead of evolving risks is essential for every business in 2026. From property valuations to cyber threats and liability coverage, these 10 insurance considerations can help you safeguard your operations and plan for the unexpected.
Running a business in Worcester, MA comes with both opportunities and risks. From property damage to cyber threats, having the right business insurance is essential to protect your investment. Murphy Insurance Agency provides customized coverage for local businesses of all sizes and industries. With over 85 years of experience, we offer trusted advice and tailored solutions to help your business thrive.
Standard property insurance provides coverage for physical damage and losses such as fire-damaged furniture or stolen equipment. It assists in covering the expenses associated with rebuilding or replacing damaged property.
Successful startups require vision, passion, and appropriate business insurance coverage. While launching a new venture can incur expenses, cutting corners on insurance is not advisable because of its critical role in safeguarding business interests.
A Business Owner’s Policy (BOP) streamlines essential insurance for small businesses, offering property, liability, and business interruption coverage in one convenient package. However, eligibility hinges on factors like business size and revenue, with certain industries needing separate coverage due to unique risks.
Running from June through November, the Atlantic hurricane season is expected to bring 9 to 15 named storms, according to NOAA. Even if you’re not on the coast, high winds and flooding can cause serious damage inland. Now is the time to review your emergency plans and confirm you have the right insurance coverage—including flood and business interruption protection—before a storm is on the radar.
Aside from power outages, businesses face risks like fire and weather-related disasters, disrupting operations for extended periods. Business interruption and extra expense insurance offer a crucial means to mitigate potential financial losses in such scenarios.