Business Interruption Insurance is generally taken as section 2 of a Business Pack policy, right beside the Property/Fire Section. It is a financial income coverage for your business, as important as the contents, stock and equipment that is always covered.
The prime purpose of business interruption insurance is to make sure that the financial position of your business returns to where it was before the loss.
Their needs to be a property policy in place (Section 1 Property/Fire) in order to be eligible for business interruption insurance, and the damage incurred must be of the type that would be covered under that property policy.
Business interruption insurance also covers various other elements. For example, if you have suffered a major interruption to your business, you might find that you need to spend extra money to get back up and running. You might have additional rent or you might have to pay for temporary premises, or extra costs of employing additional staff to assist in the clean-up process.
These can also all be covered by business interruption insurance, under what is called additional increased cost of working. Often an insurer will advance such monies to minimise downtime, and to ensure your business returns to normal as speedily as possible.
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