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What expenses could a business interruption insurance policy cover?

On Behalf of | Mar 28, 2021 | Blog, Franchise Law |

Franchise owners in Florida are wise to have a business interruption insurance policy. Examples of negative occurrences that a policy typically covers are fire, lightning, wind, falling objects and theft. You can get business interruption insurance either on its own or as part of a business owner’s policy package.

Employee wages

When a crisis temporarily shuts down your business, you don’t want to lose your employees. Business interruption insurance could provide the payroll you need to keep your employees for up to one year. A lawyer who’s knowledgeable of franchise law might assist you in filing a claim.

Loss of revenue

If your business experiences a loss of revenue from the temporary shutdown, you could receive reimbursement for up to a year. The previous year’s financial statements usually determine how much a business receives in reimbursement to stay afloat.


If you want to temporarily run your business from a different location until your permanent location is ready to open its doors again, a business interruption insurance policy could cover this expense. It usually covers the cost of moving.


Unfortunately, you still have to pay taxes when your business is going through a temporary shutdown even when some type of disaster damaged the property. Some business interruption insurance policies this expense.

Rent and loans

Many business interruption insurance policies provide coverage for rent and loan payments. A temporary shutdown can destroy a business because of the many different expenses that aren’t put on hold. It’s often a good idea to relocate in order to keep money coming in while you wait on the business to be ready for opening again. Having a business interruption insurance policy eases the financial strain that a temporary shutdown causes.