Business Interruption Insurance
Frequently Asked Questions
Is business interruption insurance required by law in Florida?
No, business interruption insurance is not legally required in Florida. However, many landlords, lenders, and commercial contracts may require proof of coverage. Even when it’s not required, it can be critical for protecting your income after hurricanes, fires, or other major disruptions.
How much does business interruption insurance cost in Florida?
The cost of business interruption insurance in Florida depends on your business type, location, annual revenue, payroll, and risk exposure.
Most small businesses can often add business income coverage to a Business Owner’s Policy (BOP) for an affordable additional premium. Businesses in higher-risk industries or hurricane-prone areas may pay more.
The best way to determine pricing is to request a customized quote based on your operations.
What events are covered under business income insurance?
Business interruption insurance typically covers lost income and operating expenses when your business is forced to close due to a covered property loss, such as:
- Fire or smoke damage
- Wind or storm-related damage
- Theft or vandalism
- Certain types of water damage
Coverage depends on the specific policy and the cause of loss. For example, flooding usually requires a separate flood insurance policy.
How long does coverage last after a shutdown?
Business interruption coverage lasts for the length of the “restoration period,” which is the time it should reasonably take to repair or replace damaged property and reopen.
Policies may provide coverage for weeks or months, depending on:
- The severity of the damage
- Repair timelines
- Policy limits and waiting periods
An agent can help you select coverage that matches your business risk and recovery needs.
