Don't let unexpected events destroy your business. According to FEMA, about 25% of businesses fail to reopen after a disaster strikes, but with the right business interruption insurance coverage, your company can weather any storm. 

At The Allen Thomas Group, we help policyholders across Ohio and 20+ states secure comprehensive protection that keeps your business running when disaster disrupts operations.

What is Business Interruption Insurance?

Business interruption insurance, also known as business income insurance, provides essential financial protection when covered events force you to temporarily close your doors. This specialized coverage replaces lost income and covers ongoing expenses like rent, payroll, and utilities while your property undergoes restoration.

Here's what makes this coverage essential: 31% of businesses cite business interruption as their top risk according to the 2024 Allianz Risk Barometer, yet only 30-40% of small business owners carry business interruption insurance.

How Business Interruption Coverage Works

Your business interruption policy activates when three critical conditions align:

• Physical damage to your covered property occurs

• Covered perils like fire, windstorm, or vandalism cause the damage

• Suspended operations result from the property damage

The claims process begins after a waiting period (typically 48-72 hours) and continues through your restoration period until normal operations resume.

Essential Coverage Components Every Policyholder Should Know

Lost Income Protection

When natural disasters or other covered events shut down operations, your policy replaces net income during the restoration period. This includes both profits and continuing operating expenses that don't stop just because your doors are closed.

Extra Expense Coverage

Need to relocate temporarily? Rush equipment deliveries? Hire additional staff? Extra expense coverage handles these necessary costs to minimize your downtime and keep your business operational during repairs.

Civil Authority Coverage

Sometimes government orders prevent access to your property even when it's undamaged. Civil authority coverage protects you when authorities close your area due to nearby disasters or emergencies.

Supply Chain Disruption Protection

Modern businesses depend on complex supplier relationships. Contingent business interruption coverage protects you when key suppliers, customers, or partners experience their own covered losses that impact your operations.

What Business Interruption Insurance Covers

✓ Lost Revenue during forced closures
✓ Payroll Expenses for key employees
✓ Rent and Mortgage Payments
✓ Utilities and Insurance Premiums
✓ Temporary Relocation Costs
✓ Equipment Rental Expenses
✓ Expedited Repair Costs

Understanding Policy Exclusions and Coverage Limits

Common Exclusions to Know

While business interruption insurance provides broad protection, certain exclusions apply:

• Pandemic Coverage: Most standard policies exclude virus-related closures

• Flood and Earthquake: Require separate specialized coverage

• Undocumented Income: Must maintain proper financial records

• Ordinary Wear and Tear: Only covers sudden, accidental damage

Coverage Limits and Deductibles

Working with an experienced insurance broker helps ensure your coverage limits match your actual exposure. Our risk assessment process considers your:

• Monthly operating expenses

• Historical revenue patterns

• Seasonal business fluctuations

• Potential restoration timeframes

Industries That Need Business Interruption Protection

Manufacturing Operations

Production facilities face significant supply chain disruption risks and equipment breakdown exposure. Manufacturing businesses need robust coverage limits to handle extended downtime during complex repairs.

Retail and Restaurant Businesses

Customer-facing operations depend heavily on location access. Even brief closures can result in permanent customer loss and revenue reduction that extends beyond the restoration period.

Professional Services

Law firms, medical practices, and consulting businesses face unique challenges when forced to relocate. Professional liability and business continuity planning become critical considerations.

Technology Companies

Data centers and tech businesses face cyber risks, equipment failure, and supply chain disruptions. Comprehensive coverage includes both traditional perils and modern operational risks.

Maximizing Your Business Interruption Claim

Essential Documentation

• Financial Statements from previous years

• Tax Returns showing historical income

• Expense Records for ongoing costs

• Contracts and Agreements affected by the loss

Working with Claims Adjusters

The claims process can be complex, involving detailed financial analysis and documentation requirements. Our team helps policyholders navigate insurance claims efficiently, ensuring fair settlement of business income losses.

Business Continuity Planning

Smart businesses combine insurance protection with comprehensive disaster recovery plans. This includes identifying alternative locations, establishing communication protocols, and maintaining relationships with key suppliers and customers.

Why Choose The Allen Thomas Group for Business Interruption Insurance

Local Expertise, National Reach: Based in Akron, Ohio, we serve businesses across 20+ states with deep understanding of regional risks and coverage needs.

Personalized Risk Management: Every business faces unique exposures. We conduct thorough risk assessments to identify your specific vulnerabilities and recommend appropriate coverage limits.

Comprehensive Protection: Beyond basic business interruption coverage, we help you build complete commercial insurance programs including property insurance, general liability, and specialized endorsements.

Claims Advocacy: When disaster strikes, we stand by our policyholders throughout the claims process, ensuring fair treatment and maximum recovery.