Business income
Coverage for lost profit and continuing expenses after a covered property loss.
Plain definition
Business income (business interruption) pays continuing expenses and net income you would have earned during restoration after a covered property loss—fire, wind, or other insured peril—subject to waiting periods and policy limits. Extra expense coverage may pay to relocate temporarily to keep operating.
Why it matters
Rebuilding walls takes months; payroll and rent continue. Business income is what keeps the company alive while the property claim is adjusted.
Example
A bakery fire closes the shop for four months. Business income pays covered payroll and net profit per the policy formula up to the limit and restoration period.
Common misunderstanding
Business income responds to covered property damage—not to a slow sales season or pandemic unless specific endorsements apply.
Policy language always controls. This is educational content, not advice. See our disclaimer.