In the unpredictable world of running a business, the unexpected is often just around the corner. Natural disasters, fires, cyberattacks, supply chain disruptions, even civil authority shutdowns—each of these scenarios can bring daily operations to a screeching halt. And when your business doors are closed, even temporarily, the bills don’t stop. That’s where Business Interruption Insurance (BII) comes in. Or does it?

For many business owners, the truth about Business Interruption Insurance is murky. Policies are often misunderstood, assumptions are made, and in the moment of crisis, it’s not uncommon for owners to discover that they’re not as protected as they thought. This blog is here to clear up the confusion and help you take proactive steps to manage risks to your livelihood.

Business Interruption Insurance (sometimes called Business Income Insurance) is designed to help cover the loss of income a business suffers after a disaster. Importantly, it doesn’t cover physical damage itself—that’s the job of your commercial property insurance. BII may step in to cover:

• Lost net income you would have earned
• Certain continuing operating expenses (e.g., rent, some utilities, and eligible payroll)
• Temporary relocation costs
• Loan payments or taxes you still owe

(All coverage is subject to policy terms, sublimits, waiting periods, and exclusions.)

But here’s the first truth: it typically only kicks in when a covered peril, like fire or windstorm, causes direct physical loss or damage to your insured location (unless an endorsement provides an alternative trigger).

Period of Restoration: This is the timeframe during which your business is eligible to receive benefits—usually starting 48 to 72 hours after the loss and lasting until your property is restored.

Covered Peril: This refers to the specific causes of loss that are included in your policy. Not every disruptive event is covered. In fact, many policies explicitly exclude pandemics, utility outages, or cyberattacks.

Civil Authority Coverage: Some policies include limited civil authority coverage when a government order restricts access due to direct physical loss or damage to nearby property caused by a covered peril, subject to distance limits, short time limits (often days), waiting periods, and other conditions.

Extra Expense Coverage: This can cover costs associated with getting your business up and running elsewhere temporarily—like renting new space or leasing equipment.

1. “It covers everything that stops my business.” Unfortunately, no. Business Interruption Insurance is not a catch-all policy. It typically excludes events like:

• Pandemics (unless specifically endorsed)

• Utility or internet outages

• Supplier shutdowns (unless you have Contingent Business Interruption coverage)

• Cyberattacks

2. “It’s included in my general business insurance.” Often, it’s not. BII is usually an optional endorsement or an added feature of a Business Owner’s Policy (BOP). Assuming it’s included is a risky bet.

3. “My employee payroll is fully covered.” Not necessarily. Your policy might only cover key personnel or a portion of payroll. If retaining your entire team during downtime is important, you’ll need to confirm your policy’s stance.

4. “I’ll be covered immediately after an incident.” Most policies have a waiting period before benefits begin. During those first few days, you could be on your own financially.

5. “My property insurance covers downtime.” Commercial property insurance generally covers physical damage, not lost income. Without BII—and without direct physical loss where required—you’re exposed to significant financial risk during downtime.

Outcomes varied by policy language and jurisdiction, but many courts denied COVID-19 business interruption claims where no direct physical loss or damage was found and/or virus exclusions applied. The takeaway? If you don’t know exactly what your policy says, you’re taking a major gamble.

Your business evolves. Your insurance should too. Here’s why a review with your insurance advisor is critical:

• Coverage Limits: Are they high enough to support your business through an extended closure?

• Covered Events: Do they reflect your current risk exposure (including digital threats and supply chain dependencies)?

• Policy Language: Are there exclusions or gray areas that need clarification or endorsement?

• Timeframes: Do you understand your waiting period and restoration period?

• Payroll Coverage: Are all employees you want to retain included?

Taking the time to understand and, if needed, enhance your coverage before a crisis occurs is one of the most important financial decisions you can make.

• Contingent Business Interruption Insurance: Covers lost income if your key suppliers or distributors suffer an interruption caused by a covered peril, subject to policy terms.
• Utility Services Endorsement: May cover income loss due to certain utility failures when specifically endorsed and triggered under the policy.
• Cyber Liability Insurance: While separate from BII, this is essential for modern businesses and may include cyber business interruption coverage by endorsement or as part of certain forms; scope and triggers vary.
• Flood and Earthquake: Often excluded from standard policies and require separate policies or endorsements (e.g., NFIP or private flood).

Waiting until disaster strikes to understand your Business Interruption Insurance is a risk that no business owner should take. At Comegys Insurance Agency, we work with business owners across St. Petersburg, Pinellas County, and beyond to review, adjust, and optimize their commercial insurance coverage. Our goal? To help you avoid being left in the dark when your business needs a lifeline.

Whether you run a small retail shop, a growing medical practice, or a multi-location operation, we’re here to help you take the guesswork out of your coverage.

If you’re unsure what would trigger your business income coverage—or for how long—let’s review your policy language and discuss options to close gaps.

Comegys Insurance Agency
Helping Florida businesses navigate insurance with confidence—since 1939.

Disclaimer: This article is for informational purposes only and does not constitute legal or insurance advice and is not a guarantee or offer of coverage. Coverage availability, terms, limits, and pricing vary by carrier, policy, industry, location, and applicable law. Requirements (including workers’ compensation) vary by business type and headcount. For guidance on your specific situation, consult a licensed insurance professional and, for lease/contract language, your attorney.

Comegys Insurance Agency 
Helping Florida businesses navigate insurance with confidence—since 1939.