Property insurance pays to repair the building; it does not automatically replace the income lost while the doors are closed. Business interruption insurance covers the net income and continuing expenses that a firm would have earned had a covered loss not occurred.

Coverage is triggered by physical damage from an insured peril that causes a necessary suspension of operations. The policy typically measures loss over a defined restoration period and may include extra expenses incurred to resume operations more quickly. Ordinary payroll and extended period of indemnity are common optional features.

Claims require detailed financial records and often involve forensic accountants. Disputes frequently arise over the length of the interruption period and the projection of what sales would have been. Clear policy wording and good pre-loss documentation materially improve recovery prospects.

• Covers lost income from a covered property loss
• Triggered by necessary suspension of operations
• Includes continuing expenses and optional extra expense
• Claims rely on detailed financial projections