The importance of having business interruption coverage is emphasized by commercial insurance consultants everywhere, such as Risk & Insurance Consultants in Atlanta.

But first and foremost, what exactly does business interruption coverage entail?

Business interruption coverage reimburses insured customers for loss of income resulting directly from interruption of other businesses. The term “interruption” may refer to damage to or destruction of real or personal property. It is important to remember that all must be covered by the policy in order to receive a reimbursement.

Secondly, how does business interruption coverage work?

The insurance provider is responsible to pay for the loss of net income that would have been earned without the interruption, as well as covering normal operating expenses such as payroll. Essentially, this type of coverage is similar to receiving “disability income.” When a loss takes place and your business is unable to earn the necessary income, this coverage takes care of operating income. From operating income, you are able to meet the expenses of energy, phones, advertising, payroll, etc.

However, this coverage is only applicable when a loss occurs to your property that is covered by the policy.

For more information regarding this coverage, call Melissa Sheker, Senior Account Manager with Risk & Insurance, at 678-384-5497. Also, visit

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