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What is Business Interruption Insurance?

LaBovick FAQ BII

Were you told your Business Interruption Insurance doesn’t cover COVID-19?

Business interruption insurance coverage (sometimes called business income coverage) is added on to a business owner’s insurance policy to protect against the loss of income a business suffers after a disaster, such as a fire, hurricane, or another natural disaster. The income loss covered by business interruption insurance can be due to disaster-related closing of the business, or due to the rebuilding process after a disaster. Business interruption insurance can be purchased by all types of businesses, as it is designed to put a business back in the same financial position it would have been in if no loss had occurred. It’s advisable for business owners to read over their business insurance policy documents to fully understand which perils the insurer helps cover.

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