Coverage that replaces lost income and pays ongoing expenses when a business is temporarily shut down due to a covered event such as a fire, natural disaster, or other insured peril. It helps businesses survive financially until they can resume normal operations.
Related Terms
Covered Peril
A specific risk or cause of loss that is included in an insurance policy. Fire, theft, windstorm, and hail are common covered perils in homeowners insurance. If a loss is caused by a peril not listed, the claim may be denied unless you have an open peril policy.
Business Owners Policy
A bundled insurance package designed for small and mid-sized businesses that combines general liability, commercial property, and business interruption coverage into a single, cost-effective policy. A BOP is typically cheaper than buying each coverage separately.
Commercial General Liability
Insurance that protects businesses against claims of bodily injury, property damage, and personal or advertising injury caused by business operations, products, or events on business premises. CGL is one of the most fundamental coverages for any business.