business interruption insurance

Thân thiện

A business owner reviews their business interruption insurance policy after a fire.

Definition

1. Noun:
   • Insurance for loss of income: A specific type of insurance coverage that compensates a business for lost income and helps pay for ongoing operating expenses when its normal operations are suspended or severely disrupted due to a covered peril, such as a fire or natural disaster.

Usage Examples

• Noun:
  • The restaurant's business interruption insurance covered the lost revenue while the kitchen was being rebuilt after the fire.
  • After the flood, the company relied on its business interruption insurance to continue paying salaries and rent.
  • It is crucial for a manufacturing plant to have business interruption insurance in case a critical machine breaks down.

Advanced Usage

• "to trigger business interruption insurance": to cause the conditions that allow a policy to be claimed.
  • The government-mandated closure did not trigger the business interruption insurance because the policy required direct physical damage.
• "coverage period": the specific length of time, after an incident, for which the insurance provides benefits.
  • Their business interruption insurance had a coverage period of 12 months, which was sufficient for the repairs.

Variants and Related Words

• Business income insurance (n): A common alternative name for the same type of coverage.
  • Their policy listed the coverage as business income insurance rather than business interruption insurance.
• Contingent business interruption insurance (n): Coverage for losses resulting from damage to a supplier's or major customer's property.
  • The factory purchased contingent business interruption insurance to protect itself if its sole parts supplier had a fire.

Synonyms

• Loss of profits insurance: Insurance specifically for income lost during a disruption.
• Business income coverage: A direct synonym often used in insurance policies.

Related Phrases

• To file a business interruption claim: To formally request payment under this insurance policy.
  • The accountant helped them file a business interruption claim with all the necessary financial documents.
• To have business interruption coverage: To possess this type of insurance protection.
  • Does your policy have business interruption coverage, or is it just for property damage?

Học thuật

Noun

1. insurance that provides protection for the loss of profits and continuing fixed expenses resulting from a break in commercial activities due to the occurrence of a peril