Imagine a retail store in Oklahoma hit by a tornado. The building is repairable, but reconstruction takes six months. The physical damage may be covered under a property policy — but what about payroll, rent, utilities, loan payments, and lost revenue during that downtime? That’s where business interruption insurance becomes the difference between survival and closure.
Business interruption coverage replaces lost income and covers ongoing expenses while a business is temporarily shut down due to a covered loss. Without it, many businesses drain cash reserves quickly, fall behind on bills, lose employees, or permanently close before reopening is possible. The damage isn’t always the building — it’s the income gap that quietly kills businesses.
In storm-prone areas like Oklahoma, business interruption is not a “nice-to-have” coverage. It’s a core survival tool. The key is making sure limits and time periods are realistic. A policy that only covers 30 or 60 days may not be enough after a major catastrophe. Reviewing this coverage before a loss — not after — is one of the smartest risk decisions a business owner can make.
Stay Tuned For Other Great Reads In This Month’s Newsletter
- Avoiding Underinsurance and Co-Insurance Penalties
- Contractors: When Are You Liable for Subcontractors’ Work?
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