Business Interruption Insurance: Why You Need It And How You Can Maximize Your Coverage

In his recent blog post on disaster planning for businesses, Foley associate Nicholas E. Williams noted: "Business interruption insurance, which covers the loss of income suffered by a business after a disaster, plays an important part in disaster planning." In fact, it can be as important to a manufacturer's survival as fire insurance. While most people would never consider operating a business without the protection of insurance covering property damage, many businesses overlook how they would manage if property damage to their business rendered it temporarily unusable. That is where business interruption insurance comes in.

Business interruption insurance provides funds to make up the difference between a manufacturer's normal income and its income during and immediately after a forced shutdown. While a property damage insurance policy will cover the cost to repair or replace buildings, equipment, and inventory, you must either include special wording to cover