Income Loss: The primary purpose of business interruption insurance is to replace the income lost during a covered interruption. This can include lost net profits, fixed operating expenses, and other revenue-related costs.

Extra Expenses: Business interruption insurance may cover extra expenses incurred to minimize the impact of the interruption or to expedite the resumption of operations. These expenses can include costs associated with temporary relocation, renting equipment, or outsourcing tasks.

Rent or Lease Payments: If you have rental or lease obligations for your business premises or equipment, the insurance may cover these payments during the period of interruption.

Loan Payments: In some cases, it may cover loan payments, particularly if these payments are necessary to maintain the business’s financial standing.

Taxes: Business interruption insurance can cover certain taxes that continue during the interruption, such as property taxes.

Employee Wages: It can include payroll expenses for key employees or necessary staff retained during the disruption.

Profits That Would Have Been Earned: This covers the net profit that your business would have earned had the interruption not occurred.

Uninsured Perils: Business interruption insurance only covers interruptions caused by perils or events explicitly listed in the policy. Perils that are not covered by the policy are excluded.

Routine Maintenance or Wear and Tear: Normal wear and tear, as well as routine maintenance issues, are typically excluded. The insurance is designed to cover unexpected and accidental events.

Underinsured Losses: If you are underinsured, meaning that your coverage limit is lower than your actual loss, you may not receive full compensation for your losses.

Non-Direct Physical Loss: Some policies require that there be direct physical loss or damage to insured property by a covered peril before business interruption coverage applies. This can exclude certain events like economic downturns or market fluctuations.

Certain Types of Events: Specific events or perils may be excluded, such as nuclear incidents, acts of war, or intentional acts by the policyholder.

Waiting Periods: Business interruption insurance often includes a waiting period, which is the time that must pass after the covered event before coverage kicks in.

Pandemics and Infectious Diseases: While some policies may cover interruptions related to pandemics or infectious diseases, many exclude such events or have specific conditions that must be met.