FGIB:Offering Business Interruption Insurance

There are many factors that can stop an operation in its track, temporarily closing the doors of a business and causing a firm to move its facility to another location while repairs or rebuilding takes place. A fire, for example, can cause significant damage to a portion of a retail shop or completely destroy it requiring rebuilding. Or, a natural catastrophe like an earthquake or hurricane can shutter a business forcing it to close while restoration takes place. Businesses purchase Commercial Property insurance and Earthquake coverage to cover the expenses involved to repair or rebuild, but equally important is covering the lost business that comes with such losses. That’s where Business Interruption insurance steps it.

Understanding Business Interruption Insurance

At Financial Guaranty Insurance Brokers (FGIB), we provide our clients with a comprehensive insurance program that includes Business Interruption coverage, also known as Business Income. Basically, Business Interruption insurance provides protection to firms against losses that arise due to shutdown of a business as a result of damage caused by a covered event, such as a fire, hurricane or other natural disaster. While Commercial Property insurance is designed to cover the cost to rebuild the physical property, Business Interruption pays for lost profits, operating expenses, and extra expenses while restoring operations. The goal behind Business Interruption insurance is to make the business whole should a covered event occur.


When it comes to Business Interruption it’s important to evaluate how much coverage you need and the scope and extent of coverage available so you there are no surprises in the event of a loss. We recommend looking at the following:

  • The financial impact if a closure occurs to get the values right.
  • Your business continuity plan in the event of a loss to minimize losses and get back operating as soon as possible.
  • The impact of a supply chain disruption on your business.
  • How a cyber breach can affect your operation and what type of coverage is available if there is a disruption and loss of profits due to the breach.
  • Identifying all potential areas of loss and documenting them post-loss.

FGIB will work with you help you make sure policy wording, extensions and limits are correct.