Skip to main content

Business Sense

Three Questions About Business Interruption Coverage

When you think about purchasing a business policy, you think about the protection it provides for a fire, windstorm or burglary. Insurance that covers the cost to repair a damaged storefront is one thing – but what about the other implications of closing your doors? Could your business financially weather the storm without that income from regular customers while you rebuild?

This is why business interruption coverage (sometimes referred to as business income coverage or income protection coverage) is so important. Here are common questions about business interruption insurance: 

  1. What is business interruption coverage?Business interruption coverage compensates you for lost income if your business is temporarily closed due to a covered loss under your business policy. Your insurance policy would pay for the loss of income you would experience due to a partial or total interruption.

    The interruption coverage time period begins with the date of the loss to covered property and ends on the date when the covered property is repaired, rebuilt or replaced with reasonable speed and similar quality.


  2. What does the business interruption insurance cover?The business interruption insurance covers the revenue the business would have earned (based on your financial records), had the loss not occurred and helps cover other expenses that don’t stop, like utility bills, payroll, taxes and rent. 

    Related: Could your business weather a natural disaster? 

  3. What if I need to temporarily re-locate my business?Experiencing a business loss is stressful enough… but then there’s the added strain of temporarily relocating while you rebuild. What’s more, that could mean additional costs, including: 
  • Relocation expenses (like moving trucks) for temporary space to work out of
  • Costs to equip and operate the temporary location
  • Overtime pay to employees in order to get the temporary location up and running 

With Business Interruption and Extra Expense Coverage, you can relax – your policy can pay for necessary extra expenses that it takes to help keep things running smoothly if you need to relocate your business due to a covered loss.

More questions? Talk to an ERIE agent

Not sure if your business policy already has business interruption and extra expense coverage? Wondering how much it would cost to add it on? Connect with your local ERIE agent to find out. He or she can answer your questions and discuss how business interruption coverage would work if you experienced a covered loss.

Could your business financially weather the storm without income from regular customers? See how this important coverage can help. /blog/business-interruption Erie Insurance

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of November 2018 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.