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Business Income Coverage vs. Business Break Insurance: What's the Difference?



It is important to protect your business with insurance. It starts with understanding what each type of business insurance covers. Business income coverage and business break insurance are terms that are often used interchangeably – but is there a difference? All insurance policies vary depending on what they cover. You may have access to insurance that protects a facility, damaged inventory and lost revenue, or you may need two separate insurances based on the insurances offered by an insurance provider.

Insurance interruption insurance

Insurance interruption insurance protects against losses and costs covered by hazards, such as damage to your building or office due to storm events. Remember that you must document the damage completely. Each insurance has a coverage limit, which must be chosen wisely based on the value of your facility, warehouse and equipment.

These insurance policies provide the financial compensation to replace damaged equipment, inventory, pay for necessary repairs or relocation. The dangers that an insurance provider covers come with a certain "recovery period". In some cases, the insurance may even cover lost income, but this coverage is more commonly known as "business income coverage." to another location, rent equipment or property and pay employees during the transition. The conclusion is that every policy is different.

Corporate income coverage

Corporate income insurance covers loss of income that has occurred when a company is unable to conduct business after being affected by a covered hazard. These usually include damage to a business from fire, theft and wind-related events. The lost income can be paid out of your insurance for a certain period of time, called the "recovery period". The amount paid out on your insurance is based on your business records. Make sure all records are stored digitally, accessible in all circumstances.

What is covered by business income insurance?

This insurance often covers the following losses:

  • Lost net income, based on your financial items
  • Cost of paying a mortgage, rent or rent
  • Loan payments
  • Tax payments
  • Fixed costs
  • Commissions
  • Education costs
  • Losses related to the compulsory closure of civilian authorities
  • Wages

What are not covered by these policies?

Business income insurance or business interruption insurance does not pay for certain types of damage, which requires a separate insurance:

  • Broken objects such as glass
  • Flood damage
  • Earthquake damage
  • Tools
  • Losses from virus or pandemic Protect your business the smart way

    The ideal business insurances are affordable, have high limits and cover the widest range of potential losses. Our local agent can help you make the right decision by showing you what is currently offered by different vendors and deciding which policy provides the best protection with the least impact on your results.


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