This article focusses on Business Interruption insurance (also known as Business Income Insurance) which is a relatively less popular insurance coverage as compared to other coverages. However, this article highlights its meaning and importance in depth. It also explores how the BI coverage has been perceived globally for business loss claims arising due to COVID 19.
What is a Business interruption insurance?BI Insurance is an insurance that provides coverage against loss of income when your business is shut down due to a covered peril.
- Your shop catches a fire, as a result of which your business needs to shut down while you repair the damages. In this case if you have a BI insurance, it can help pay your lost income during this time.
- Thieves break in and steal valuable inventory from your electronics store, due to which, you have to temporarily shut down while you replace your inventory. Your BI insurance can help cover your lost income during this time.
- You own a factory and an earthquake hits in your area and your building suffers from extensive damage. As a result, you must shut down your operations to repair the damages. Your BI insurance can help cover your lost income during this time of restoration.