Business interruption insurance replaces lost income (and potentially other expenses) when a business is closed due to a disaster that results in physical damage to the business such as a fire or storm. Typically, this is not a standalone policy, but rather is an add on to a commercial property policy or part of a package policy such as a Business Owner’s Policy (BOP) or Commercial Package Policy. (CPP)
It is important to note that Business Interruption policies typically have specific exclusions. For instance, even all-risk insurance plans tend to have exclusions for losses due to viruses or bacteria. This includes instances of the government mandating (Civil Authority) a business close due to a pandemic. Since the root cause is a virus the policy would not be reimbursed for the resulting lost income.
