Learn the Differences Between Business Property and Business Interruption Insurance: Which Coverage Is Right for You? 

As a business owner, your top priority is ensuring smooth operations while protecting your assets. Two types of insurance can help make your business a peaceful ride, Business Property Insurance and Business Interruption Insurance. While they sound similar, both offer very different aspects of business protection. Make sure you understand which coverage your business requires more of, or whether you require a combination of the two to protect against unexpected losses.  

What is Business Property Insurance?

As the name says, this type of insurance protects the physical assets of your property, where your business operations are performed. This coverage protects buildings, equipment, inventory, and furniture – against risks like theft, fire, and natural disasters. If any of your property is damaged by an event mentioned in your policy, your insurance will cover the costs for repairs or replacement. Without such insurance in place, your business and assets could severely suffer trying to keep up with the costs. Key coverages include your building structure, business equipment & inventory, furniture and fixtures, and loss of goods due to theft or damage.

What is Business Interruption Insurance?

Another crucial form of insurance for a business owner is Business Interruption Insurance, also called Business Income Insurance. This type of insurance covers any loss of income that your business experiences because of being temporarily unable to operate because of an event. Therefore, if your business is going through a time where it can’t perform its primary operations – your insurance would make sure that you do not suffer a financial loss and are paid during the downtime. Key coverages include lost income, operating expenses, temporary location expenses, and employee wages. Therefore, covering almost everything during the time your business is going through repairs or replacement due to an unfortunate occurrence.

There are several key differences between Business Property Insurance and Business Interruption Insurance. The main thing to understand is Business Property Insurance covers your property and physical assets, whereas Business Interruption covers your lost income and operating expenses. While Business Property Insurance restores and repairs your assets, Business Interruption keeps you financially covered during this period, making sure you do not suffer financial losses during the downtime period.  

Ideally speaking, combining both types of coverage into a comprehensive package is the right way to go about it. To help you decide how much coverage is needed for each, speak with a knowledgeable and experienced broker or agent. And since most every business is vulnerable to both – asset loss and operational downtime – comprehensive insurance is the way to go.  

If you’re looking for expert guidance on the various types of insurance that could fulfill your business needs, feel free to get in touch with us – remember, our priority is you.  

For expert advice, contact Shayne Bevilacqua at Professional Liability Insurance Group.  
Call or Text us at +1 (877) PLIG – 123, That’s (877) 754 – 4123.