business insurance for loss of income

About Chubb: About Chubb

About Chubb: About Chubb in the U.S.

About Chubb: Careers

About Chubb: Citizenship

About Chubb: Investors

About Chubb: News

Claims: Claims

Claims: Claims Difference

Claims: Claims Resources

Claims: Report a Claim

Login / Pay My Bill: Login for Business

Login / Pay My Bill: Login for Individuals

Login / Pay My Bill: QuickPay for Businesses

Login / Pay My Bill: QuickPay for Individuals

Login / Pay My Bill: Login to CRS

Contact Us: Contact Us

Contact Us: Global Offices

• File a claim
• Get a quote

Business interruption insurance and coverage basics

Most companies know the importance of insuring their property and assets against damage or liability. But in order to cover operating expenses and income losses in the event certain catastrophes lead to the temporary closure of a business, there’s another critical safeguard to consider: business interruption insurance. Read these FAQs to learn more about business interruption coverage and how it can help your business recover after a covered loss. Keep in mind that individual policies can vary widely, so it’s always important to review your coverage options with your agent or broker.

What is business interruption insurance?

Business interruption insurance, sometimes called business income insurance, can be part of a standard business policy form or purchased as an endorsement or rider to a property insurance policy or package. It covers operating expenses and lost income for a set period of time incurred by a company that closes or is unable to operate normally as a result of physical damage to the business property by a covered peril.  For example, if a fire renders a retail store unusable and it is not able to sell merchandise and generate revenue during the time it is closed for repairs, business interruption coverage could help offset income losses along with continued necessary day-to-day expenses (such as payroll and taxes).

What is covered by business interruption?

Business insurance policies vary from insurance company to insurance company, but business interruption coverage typically includes compensation for:  

• Lost revenue - based on prior financial records
• Mortgage, rent and lease payments
• Employee payroll
• Taxes and loan payments - due during the covered period
• Relocation costs - if the business must move to a new or temporary location due to physical damage to the business premises

Are business income insurance and business interruption insurance the same thing?

“Business income” coverage is typically the same as “business interruption” coverage and the terms are often used interchangeably. Different insurers generally use one or the other depending on their product offerings.

What triggers a business interruption claim?

Generally, a business interruption loss is only covered if it is the result of covered physical loss or damage to property. Your policy will describe the specific events that trigger your business interruption coverage.

How long does business interruption coverage last?

Most business interruption policies have a “period of restoration” (synonyms include “period of liability” and “period of indemnity”). This is the length of time that a policy will help pay for lost income and expenses while the business is being restored. Policies typically limit the period to a specific number of consecutive days, but it is possible to obtain an extended period of time, so make sure to discuss the potential risks and coverage options with your insurance professional. Sometimes business interruption policies have a “waiting period,” which is a specified number of days after the physical damage occurs, before the policy’s coverage for business interruption loss is triggered.

How much business interruption insurance do I need?

A rule of thumb is to use a business’s gross earnings and projections to estimate future profits and determine the right amount of coverage. Your agent or broker can help you with this.

How much does business interruption insurance cost?

The cost of business interruption coverage depends on several factors, including:  

• Number of employees
• Amount of coverage
• Prior loss experience

Your location can also impact the price of the policy. For example, if the business is in an area with a higher risk of certain covered perils, the cost of business interruption insurance may increase.

Are there additional business interruption coverages I should consider?

When reviewing your business interruption needs with your agent or broker, you may want to discuss whether any of the following coverages are included or can be added with an endorsement:  

• Extra expense insurance  - covers necessary expenses during the period of restoration that the business would not have incurred if there had been no physical damage to the property. These expenses typically relate to minimizing the time the business is wholly or partially closed and/or keeping the business running during the restoration period. For example, expenses related to temporarily relocating business operations to another building, or the need to pay overtime to hire more employees.
• Ordinance or law  (sometimes called business ordinance) – in policies that provide coverage for the additional cost to repair a building to bring it up to code, ordinance or law can also cover business interruption losses arising from the increased period of time required for the repairs.
• Civil authority  - extends business interruption coverage to losses incurred when an order of civil authority (e.g., state, local or federal governmental entity) prohibits access to your business premises resulting from physical damage caused by a covered peril to adjacent or nearby property (if that property is of a type that is covered by the policy)

Insights & Resources

We keep you informed — and your business protected — with these helpful articles.

This document is advisory in nature and is offered as a resource to be used together with your professional insurance advisors in maintaining a loss prevention program. It is an overview only, and is not intended as a substitute for consultation with your insurance broker, or for legal, engineering or other professional advice.

Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing insurance and related services. For a list of these subsidiaries, please visit our website at  www.chubb.com . Insurance provided by ACE American Insurance Company and its U.S. based Chubb underwriting company affiliates. All products may not be available in all states. This communication contains product summaries only. Coverage is subject to the language of the policies as actually issued. Surplus lines insurance sold only through licensed surplus lines producers. Chubb, 202 Hall's Mill Road, Whitehouse Station, NJ 08889-1600.

Seeking a business insurance quote?

We can help with that.

• Moving center
• What's your stuff worth
• Financial future
• Business insurance
• Event insurance
• Flood insurance
• Identity protection
• Landlord insurance
• Motorcycle insurance
• Pet insurance
• Power sports
• Travel insurance
• Disaster insurance coverage
• Calculators
• Pay-per-use

What is business interruption insurance?

By   Allstate

Last updated : December 2023

Business interruption insurance plays a crucial role in replacing lost income and coveringr extra expenses when a business is affected by a covered peril. Business interruption coverage (sometimes called business income coverage), often included as part of a business owners insurance policy , aids in helping your business recover after a loss.

you can count on a local agent

What does business interruption insurance cover.

Business interruption insurance is designed to help protect against income loss when a covered peril impacts a business. These perils typically include theft, fire, wind, falling objects or lightning. Be sure to read your business insurance policy documents to understand exactly what situations your insurer helps you cover and what kind of events your policy protects your business from.

Imagine if a fire damages your business, leaving the building uninhabitable and destroying merchandise just before it was about to ship to customers. Business interruption coverage may assist you in two ways:

• Reimbursement for lost income arising from the destroyed merchandise (minus expenses already paid, such as shipping).
• Coverage for extra expenses incurred if you must temporarily relocate your business due to the fire such as, the cost of rent at the temporary location).

Keep in mind that, while the property coverage in your business owners policy caters to repairing the damaged building (if owned) and replacing contents and equipment, these repairs aren't covered under business interruption coverage.

How much coverage do I need?

Business interruption insurance typically has a coverage limit . A limit is the maximum amount your insurer will pay toward a covered claim. Choosing suitable coverage limits appropriate for your business is essential, as financial losses exceeding these limits typically become the responsibility of the business owner.

Here are a few things considerations when determining the amount of business interruption coverage for your business:

• About how long would it take to get your business back up and running after a loss?
• If you rent your office space, how well protected is the building?
• Are the fire alarms and sprinkler systems in the building up-to-date and functional?
• Is comparable commercial space readily available in your area, or would it take weeks to find a suitable temporary location?

Business interruption and restoration period

Your business interruption coverage likely outlines a "restoration period." This is the length of time that your policy will help pay for lost income and extra expenses during business restoration after a covered claim. It's important to read your policy documents which details the start and duration of this restoration period.

Typically, a 48- to 72-hour waiting period precedes the restoration period, but it typically lasts up to 12 months (this time period usually can't be extended by the policy holder). That means if your business was damaged on October 1, you'd receive business interruption coverage benefits until October 1 of the following year — even if your policy expires before then. For example, your policy might end because your business was heavily damaged and you may not have a business to insure. If your business's building repairs are not completed before the 12-month restoration period ends, your business interruption coverage would expire. This means you'd stop receiving reimbursement for things like lost income.

Ensuring timely repairs is also essential to maintain eligibility for reimbursement. If you don't, it could create potential issues with loss of income payments.

Reducing business losses after an interruption

When a business is damaged in certain situations, immediate repairs can help prevent further losses. For example, a strong storm rolls through and high winds caused a few windows to break. An insurance company will typically expect a business owner to board up any broken windows to help keep the premises secure and prevent further damage.

Many insurers will reimburse business owners for some of the repairs they may need to make right away. Documenting damage through photographs or videos and retaining receipts for repairs made will help assist when seeking reimbursement for these types of immediate repair expenses.

Understanding how business interruption coverage helps protect your business can help you be more prepared in case of an incident or if you need to file a claim. Have questions, or want to make sure your business insurance policy is keeping up with your needs? Talk to your insurance provider today.

Stories & tips for everyday life

• Small business apply disaster loan
• Create a business succession plan
• What is angel investing?
• What Is Cyber Insurance Coverage?
• Business liability insurance
• 5 common business risks
• What is E&O coverage?
• Equipment breakdown coverage

• Business Owner’s Policy
• Commercial Auto Insurance
• Commercial Crime Insurance
• Commercial Property Insurance
• Commercial Umbrella Insurance
• Cyber Liability Insurance
• D&O Insurance
• Drone Insurance
• General Liability Insurance
• Product Liability Insurance
• Professional Liability Insurance
• Workers’ Compensation Insurance
• View All Coverages
• Best Startup Insurance
• Best Small Business Insurance
• Best Legal Malpractice Insurance Companies 
• Best Cyber Insurance
• Best General Liability Insurance
• Best Commercial Auto Insurance
• Best Product Liability Insurance
• Best Professional Liability Insurance
• Best Workers Compensation Insurance Companies
• Best Business Owner's Policy
• Best Commercial Crime Insurance
• Automotive Service
• Building Design
• Cleaning Services
• Construction & Contracting
• Entertainment & Events
• Financial Services
• Food & Hospitality
• Health Care
• IT / Technology
• Personal Care
• Photography & Videography
• Real Estate
• Sports & Fitness
• Embroker Commercial Insurance Review
• Hiscox Commercial Insurance Review
• Chubb Commercial Insurance Review
• CoverWallet Commercial Insurance Review
• Business Term Loans
• Business Lines of Credit
• Startup Business Loans
• Equipment Financing
• Invoice Financing
• Online Business Loans
• Merchant Cash Advance
• Short-term Business Loans
• Personal Business Loans
• Business Acquisition Loans
• Commercial Real Estate Loans
• View All Types
• Best Small Business Loans
• Best Banks for Business Loans
• How to Get a Small Business Loan
• Business Loan Requirements
• Business Loan Interest Rates
• Average Loan Interest Rates for 2021
• Small Business Credit Cards
• Credit Card Processing Fees
• How to Accept Credit Card Payments
• How to Get a Business Credit Card
• Getting a Credit Card With Your EIN
• Business Insurance Glossary
• How much does small business insurance cost?
• How much does cyber insurance cost?
• How much is general liability insurance?
• What is a certificate of insurance (COI)?
• What is an insurance agent vs. broker?
• What is business liability insurance?
• What is the best small business insurance?

Business Income Insurance

Business Income Insurance protects your business against lost profits due to damaged or destroyed property.

Advertiser disclosure.

At AdvisorSmith, our mission is to bring clarity to business insurance and provide straightforward, honest research to empower small business owners. We, like you, are small business owners, and your success is our success. In order to accomplish our mission, we, at times, are compensated by our partners. While this partnership may influence where and how products appear on our site, it in no way impacts our research, recommendations, or advice. We feature products and services from companies we find reputable, whether or not they are our advertising partners. No partner can guarantee placement or favorable reviews on AdvisorSmith.

Get a quote on Business Income Insurance

For large and small businesses alike, any incidents or disasters that may cause your company to cease operations, even temporarily, can be incredibly costly. Business Income Insurance or Business Interruption Insurance is an important coverage that provides you with the financial resources you’ll need to ride out any disruptions to your revenue and cash flow.

What is Business Income Insurance?

Business Income Insurance provides coverage for loss of income and operating expenses if your business must temporarily close due to property damage. Also known as Business Interruption Insurance, Business Income Insurance will provide funds to address your lost income or revenue while your business is recovering from the damage that was directly caused by a covered peril. This type of insurance is not sold on a standalone basis but can be added to your commercial property insurance policy or bundled with a business owner’s policy .

• Your retail bakery suffers a fire. It takes the bakery 2 months to clean up and reopen. The business has both property and business income insurance. The property insurance will cover the damages to the bakery’s equipment and storefront. The business income insurance will cover the lost profits for the 2 months that the bakery is not in business. If the bakery only had property insurance, and did not have business income insurance, it would have been in danger of going out of business while recovering from the fire.

Who needs Business Income Insurance?

Business Interruption Insurance can help a variety of businesses, but it may be particularly important for companies that:

• Depend upon physical properties and assets to operate their business
• Are located in areas with frequent natural disasters
• Have equipment or machinery that is heavily customized or time-consuming to purchase

Business Interruption Insurance is important for companies that rely on physical assets to operate their business, which includes most retail, restaurant, wholesale, and manufacturing businesses. Some service businesses, like hair salons, which require specialized facilities should also consider purchasing Business Interruption Insurance. For small and midsize companies that rely on a small number of resources and may not have the redundancy of larger companies, Business Income Insurance can be a critical coverage. Often, smaller companies that suffer property damage may have no other option than to shut down for a period of time, while larger organizations may be able to operate from another office or retail space.

Companies in industries where work can be done remotely or where work is typically done at client homes or offices, like an appliance repair service, likely do not need the coverage provided by Business Interruption Insurance.

What does Business Income Insurance cover?

Business Income Insurance typically covers:

• Lost income if your business is unable to operate due to damage or destruction of property by a covered peril
• Profits that would have been earned based on historical financial records if property damage had not occurred
• Fixed operating expenses, including utilities, rent, and employee salaries

Business Income Insurance will kick in when there is a suspension in your business, which occurs if your business operations slow down or stop. The suspension in your business must be caused by the direct physical loss, damage, or destruction to property used by your business. The loss or damage must result from a covered cause of loss in your commercial property insurance policy , and the perils covered are identical to your property policy. For example, fire damage is covered in property insurance, but flood damage is usually not covered, so fire damage would be covered in the Business Income Insurance policy, and flood would also be excluded.

If you lease your business premises, the building that houses your business may not be insured under your property policy. However, if the building suffers physical damage from a cause of loss that is covered in your policy, you will still receive coverage under your Business Income Insurance policy.

Period of Restoration

The period of restoration is the amount of time that is reasonably required to rebuild, repair or replace the damaged or destroyed property, or the amount of time required to move into a different property and permanently reopen, whichever is shorter. During this period, the insurance company will compensate your business for lost income under a Business Income Insurance policy.

• Your manufacturing facility catches on fire and is destroyed. It takes three months to move to a new building, purchase, install, and configure new manufacturing equipment so that your factory can reopen. The period of restoration lasts from the time of the fire until the factory reopens in three months. During this time, your Business Income Insurance policy would provide coverage.

The period of restoration does not end if the policy expires or ends, as long as the physical loss or damage occurred while the policy was active. The insurer will continue to pay for losses to business income up through the end of the period of restoration.

• Your business experiences a loss on May 25, and your Business Income Insurance policy ends on May 31. The period of restoration for this loss is 2 months, so the policy will pay for your lost business income through July 25 even though the policy has expired.

On many policies, the period of restoration is limited to a maximum of 12 months. This maximum can usually be extended up to an additional 24 months when purchasing the policy by paying an additional premium.

Waiting Period

Business Income Insurance is usually subject to a waiting period, which is most commonly 72 hours. None of the losses to business income during the waiting period are covered. The waiting period begins at the time of the loss.

What are the key exclusions to Business Income Insurance?

Business Interruption Insurance is not meant to cover normal business risks such as economic risks or poor business decisions. It is meant to protect your business against accidents and disasters that are out of your control.

Some things that Business Interruption Insurance does not cover include:

• Reduced profits due to competitors or changes in consumer preferences
• Poor company management
• Slowdowns in the economy
• Weather events that may close a business temporarily but not damage property, such as heavy rain or snow

Business Income Insurance Pricing

Business Income Insurance is not sold on a standalone basis but can be added to your commercial property insurance policy or bundled with a business owner’s policy . In order to determine pricing for your property policy, insurers will take a look at the risk of loss for your business. Part of this calculation will involve assigning a commercial property insurance rating , which is specific to the building or property you’re looking to insure. The higher risk your business is rated, the higher the premiums will be.

Some of the factors that can affect your premium pricing include:

• Claims history. A history of prior losses can increase your premiums.
• Neighbors. Neighbors engaged in risky activities, such as a dry cleaner using flammable solvents or chemicals may increase your premiums.
• Fire risk. Having a fire station nearby may lower your premium. Fireproof (brick or stone) construction or fire-resistant interior floors, walls, and doors cost less to insure. Fire alarms or sprinkler systems may also reduce your rates.
• Business type. Depending on what type of business you run, your risks for property damage may be higher or lower. For example, in the same location, a restaurant or auto repair shop would have higher risk and higher premiums than a flower shop due to increased risks of fire.
• Neighborhood. The surrounding neighborhood characteristics can also affect your rate. If the immediate area has high levels of criminal activity or is exposed to frequent accidents or natural disasters, your rates may be higher. Also, if you have neighboring businesses with high fire risks such as an oil refinery, you may also face higher rates.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer property policies:

Business Income Insurance vs. Extra Expense Coverage

Extra expense coverage is an additional, optional coverage that can cover extra expenses to keep your business running after an accident or disaster. It is valuable for businesses that need to operate right away after a disaster, or who can move to a temporary location to avoid a shutdown.

Extra expenses coverage will cover anything beyond your normal day-to-day operating costs. This means anything above and beyond repairing your business’s physical property that you would not have incurred without the incident that damaged your business’s property, during the period of restoration.

• Your business sells office supplies and operates out of a warehouse you own. A windstorm damages one wall of the warehouse. In order to continue to service your customers without interruption, you rent a temporary warehouse. You also pay a moving company to move your inventory from your normal warehouse into your temporary warehouse. The extra expense coverage would provide coverage for these expenses.

Additional Business Income Coverages

Several other coverages can be added on to your Business Interruption Insurance that can provide protection against additional risks that can interrupt your business operations. These coverages require the payment of additional premiums.

Extended Business Income Coverage

Extended business income coverage is an optional coverage that can cover lost profits that occur after the business has reopened but has not yet gotten back to its pre-loss sales level.

The core Business Income Insurance coverage only covers lost profits during the period of restoration. Once the business is reopened and able to operate at the same capacity as its pre-loss level, the period of restoration and Business Income Insurance coverage ends. However, it may take some time before customers realize that a business has reopened, and the business may not immediately get back to its sales level before the loss occurred.

Extended business income coverage can compensate the business for the difference between the actual profits the business is earning after reopening and the profits the business earned before it closed. The term of this coverage can be elected by the policyholder, with longer terms requiring higher premiums.

Service Interruption

Service interruption coverage can protect against direct physical loss or damage to utility lines that service your business. These utilities include electrical, gas, water, sewer and other types of utilities. If physical damage to these utilities causes your business to have interrupted or impaired operations, your income losses can be covered under service interruption coverage.

Contingent Business Interruption

Contingent business interruption coverage provides coverage if your direct suppliers or customers suffer a physical loss to property caused by a peril listed in your policy which causes a reduction to your business income.

• You own a manufacturing business that relies on custom precision parts from a ball bearings company, and their factory burns down. You cannot manufacture your product without their parts. Contingent business interruption would cover your business for the income losses you suffer while the part is not available.

Leader Location

Leader location coverage protects your business if a direct physical loss occurs at a neighboring business that draws customers to your business.

• You own an ice cream store at a shopping mall, and your shop is located next to the anchor tenant, a major national department store chain. A fire at the department store closes it down for several months, causing your foot traffic and profits to suffer. Even though your property did not experience any damage, leader location coverage would cover your lost profits.

Interruption by Civil Authority

Interruption by civil authority coverage protects your business if the government prohibits access to your business due to physical damage or destruction of neighboring or adjacent properties.

• A wildfire burns down properties near your business and continues to burn, and the local government may not allow you to access your property for safety reasons. This coverage would compensate you for your income losses in this case.

Business Income Insurance and Coronavirus

The coronavirus pandemic has forced many businesses to temporarily close operations, whether due to local government or health orders or simply because of a sudden drop in demand. Many businesses are looking to their insurance policies to provide coverage during this difficult time. Business Interruption Insurance has been a hotly contested area, as many businesses that have sought coverage from their policies have seen their claims denied by insurers.

Although the coverage provided by Business Interruption Insurance will vary based upon the specific language in your policy as well as the laws and court rulings in your state, most business interruption insurance only provides coverage when there is a direct physical loss or damage to property at your business location. Many insurers have used this as justification to deny coronavirus-related claims. In most commercial property policies, however, the term “direct physical loss” is not specifically defined, so the definition has generally been decided through court cases.

Currently, the majority of court cases have ruled in favor of the insurers. However, a few high-profile cases have been found in favor of the policyholders. As the pandemic continues to impact the American economy, it’s possible that more courts will rule in favor of restaurants, bars, and other small businesses.

For more information on coronavirus and its impact on business insurance, check out our FAQ .

If your business depends on a physical location or physical property, you may benefit from the coverage provided by Business Income Insurance. In the face of a disaster or accident that causes damage to your physical property, you may be temporarily unable to continue your business operations. While your property is being repaired, financial losses from paying fixed expenses like utilities, rent, and payroll can add up, while your income dries up due to your business closure. Business Income Insurance can help your business in this type of scenario, providing you with funds to keep your business afloat while repairs to your property are underway.

Small Business Resources

• Business Insurance Basics
• Business Insurance Types
• Insurance Industry Guides
• Data Analyses & Studies

About AdvisorSmith

• Leadership Team

• News & Press
• Agent Login
• 855.214.2291

What Is Business Income Insurance?

Expert Reviewed

Our panel of insurance experts has reviewed the content to ensure that our reporting and statistics are accurate, easy to understand and unbiased.

SmartFinancial Offers Unbiased, Fact-based Information. Our fact-checked articles are intended to educate insurance shoppers so they can make the right buying decisions. Learn More

Business income insurance is an optional insurance plan that covers operating expenses and payroll if your business temporarily closes due to a covered property loss. For example, this coverage would step in if a restaurant closes due to a fire and isn't generating any cash flow. During this time, business income insurance can pay for payroll, rent, utilities and more until your business is back up and running.

Business income insurance is not sold as a standalone policy and is usually an add-on to an existing commercial insurance policy. Keep reading to learn how business income insurance works and if it’s right for you.

On This Page

Is Business Income Insurance Required?

What does business income insurance cover, how does business income insurance work, how to get business income insurance.

Many small businesses can benefit from investing in business income insurance, but it is not mandatory. However, if your business has to shut down because of a covered hazard , like a fire or vandalism, then this optional coverage will help pay for specific financial losses.

Business owners will have to determine what their business income insurance policy will cover, and what is exempt and calculate their overall business income. This lets your insurer know how much is needed to cover rent, payments, utilities, payroll and more.

The actual cost of your business income policy depends on how much coverage you need, where your business is located and the type of business you have.

As a business owner, you should ensure that your policy limits are sufficient to cover your company for more than a few days. After all, it can take weeks or even months for a business to recover after a covered loss.

Business Income Insurance Limitations

Business income insurance can protect you from certain situations — the keyword being “certain.” Not all losses will be insured. Consider the two scenarios below:

First scenario: If a heavy windstorm collapsed your business’s roof and sparked a month-long closure for repairs, your business owner policy would cover the property damage portion and your business income could help with lost revenue linked to the business closure.

Second scenario: If a windstorm closed a supplier’s location and you lost business as a result, your business income insurance would not step in. The damage did not take place on your premises and would not qualify for coverage.

It’s essential that business owners fully understand how they’re covered and under what circumstances. If additional coverage is needed to protect your operations, let your insurer know.

Get Personalized Business Insurance Quotes Here

Business income insurance covers loss of income if your business needs to close suddenly. This coverage can also protect your business from a slowdown after it reopens. For example, sales may still be lower than usual even after reopening your bakery following a week-long shutdown. Types of coverage in a business income insurance endorsement include:

• Lost profits: If you suffered significant financial loss because your business wasn’t operable during a profitable period — like the holidays — then your insurance will help recover lost profits.
• Rent or mortgage: If you’re paying rent or mortgage on a commercial building, you’re still responsible for making those payments, regardless of the current status of your business. Business insurance provides some financial cushion on your rent or mortgage payments until your business is back up and running.
• Temporary relocation: Business income can cover relocation costs to transition into a temporary office or building.
• Payroll : Business income insurance can cover employee salaries and wages, taking care of your workers while your business is temporarily closed.
• Loan payments : If your business is closed and there’s no cash flow, you may not have enough funds to make your next business loan payment. Business insurance can help cover these payments so you do not default on your loan.
• Taxes : If your business needs to close its door temporarily before taxes are due, your insurance can cover these costs.
• Utilities : Although your business is closed, you’re still responsible for paying some of the utility costs, like electricity and water. Business income insurance can help ensure you stay on top of these bills.
• Marketing and advertising: If you paid a marketing company to run a campaign, but you recently needed to shut down your business for repairs, business income insurance will cover advertising costs until you can make a profit again.

What Isn’t Covered?

As with many insurance policies, members are not insured against losses caused by government seizure, acts of war and nuclear hazards. Other events that business income insurance typically excludes might include:

• Earthquakes
• Severe weather
• Epidemics and diseases
• Downed power lines
• Undocumented income
• Losses caused by uncovered perils

Business income insurance works together with commercial property insurance when it comes to physical losses.

Commercial property insurance covers the cost to repair or replace damaged equipment. Meanwhile, business income insurance helps replace lost income while key equipment is undergoing repairs.

When an unmitigated disaster suddenly causes your operations to shut down temporarily, you still need to pay bills, utilities, loans, rent or mortgage, payroll and much more. If this happens to you, all you need to do is file a claim through your insurer to get these expenses covered by your business income coverage for one month or more.

Before filing a claim, you must know what your policy will or will not cover. That way you can focus on what is covered and maximize your payout. You will also need proof or documentation when filing a claim, including your past payroll expenses, lease payments and a record of your business’s profits. Never wait before you file a claim — you’ll want to do this as soon as possible since you will likely face a crunch in cash flow while your business is temporarily closed.

Most business income policies have a waiting period deductible instead of a dollar deductible. For example, coverage may not start until 30 hours after the damage occurred, meaning that any losses during the 30 hours would not be included in your coverage. Your policy should have clearly stated terms regarding your waiting period deductible.

Who Can Benefit From Business Income Insurance?

If you have a brick-and-mortar business that sells a product or service, you will likely see great benefits in buying business income insurance. Contractors , restaurant owners and small business owners would all experience devastating financial losses if their place of business were damaged and had to close for repairs. Business income insurance can provide at least some financial relief until the business returns to normal operations.

How Long Does Business Income Coverage Last?

Business income insurance has a restoration period, which is how long your policy will help cover expenses and lost profits while your operations are being restored. Standard policies will provide coverage for 30 days and it can be extended up to 365 days depending on your policy. However, keep in mind that there may be a waiting period after you file a claim. Typically, this waiting period is 48 to 72 hours and the restoration coverage will apply after this period. 

Business income coverage can help small businesses protect themselves, and it’s easy to get as part of another insurance plan.

Small to mid-size businesses of 100 employees or fewer, or with an annual income below $5 million may add business income coverage to their business owner’s policy . This policy offers basic protections, like commercial property coverage and general liability insurance . 

Larger businesses may require stand-alone commercial property insurance to ensure coverage limits are sufficient. Many policies already include business income insurance, so check your policy first before adding it.

Should my small business have business income insurance?

Small business owners should consider business income insurance to defend against lost revenue due to unexpected property losses. That way, they're covered for lost profits if their business has to close due to key equipment being stolen, their office suffering a fire or some other type of covered loss.

Is business income insurance the same as business interruption?

Business income insurance is also called business interruption insurance — both help small businesses against financial losses due to suspended business operations when a covered event occurs. 

What happens if I don’t have business income insurance?

Business owners without business income insurance may experience severe financial losses that they may not be able to recover from. Unless you have funds in reserve for paying bills, loans and payroll while your business is not generating any cash flow, your best bet is to invest in business income insurance. 

Business owners interested in saving money may benefit from shopping around. A bare-bones business insurance policy will not be able to protect you if an unexpected event occurred, like theft or smoke. If you don’t have money on hand to keep your business running for weeks or months while repairs happen, you may lose your business. SmartFinancial’s free service can help you better navigate the business insurance marketplace. Just enter your zip code below to compare commercial insurance rates in your area. 

• BPJ Insurance. “ Business Income Coverage: Survival .” Accessed Dec. 2, 2022.
• Insurance Information Institute. “ Do I Need Business Interruption Insurance? ” Accessed Dec. 2, 2022.
• Insurance quotes / 
• Commercial / 
• Business Income Insurance

Christa Ehrler is a wordsmith, copywriter, and traveler with over seven years of digital publishing experience. She is a storyteller who believes in the power of words.

Get a Free Commercial Insurance Quote.

More on commercial insurance.

Looking for Commercial Insurance?

Compare rates from dozens of companies in less than 3 minutes.

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

What Is Business Interruption Insurance? What It Covers, How to Get It

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Table of Contents

What is business interruption insurance?

What does business interruption insurance cover, how much does business interruption insurance cost, do i need business interruption insurance, how to get business interruption insurance.

Business interruption insurance helps make up for the revenue your business loses while recovering from an accident or disaster. This kind of business insurance can also help cover extra expenses, like renting a satellite office, while you rebuild.

Business interruption insurance, which is also called business income insurance , is a good choice for business owners who would be forced to stop operations due to property damage. It’s not usually sold on its own, but you can buy it as part of commercial property insurance or a business owner’s policy .

Looking for tools to help grow your business?

Tell us where you're at in your business journey, and we'll direct you to the experience that fits.

on NerdWallet's secure site

Business interruption insurance typically covers:

Lost revenue during the recovery period.

Rent, mortgage or lease payments.

Loan payments.

Training employees to use replacement equipment.

Look for a business interruption insurance policy that includes extra expense coverage . This covers costs like:

Renting a temporary space.

Outfitting that temporary space.

Spending extra money, such as paying a contractor overtime, so repairs move faster.

» MORE: What does business insurance cover?

In order for business interruption insurance to pay out, the event that caused the loss — that is, the natural disaster or accident — must be covered under your commercial property insurance policy . That means if your business is forced to close by a fire, hail damage or vandalism, you’re covered. But if the cause is a flood or earthquake, you’re not unless you have additional coverage that protects against those risks.

What isn't covered by business interruption insurance?

Business interruption insurance typically doesn’t cover losses caused by:

Earthquakes.

Utility outages.

Pandemics or disease outbreaks.

Business interruption insurance won’t cover revenue that isn’t documented in your business financial records. It also doesn’t pay out to cover repairs themselves — that’s what business property insurance is for.

» MORE: How to get business insurance

Business interruption costs vary by industry, location, number of employees and how much coverage you want. If you’re in an area with a higher risk of certain natural disasters, you might pay more.

Like with other business insurance costs , you’ll also likely pay more for more coverage. To determine how much coverage you want, think about your revenue forecasts and how long it might take to get your business back up after certain types of events. Also, consider whether your current work area is well protected and how hard it would be to find a temporary location.

As with most types of business insurance , you can pay extra to extend your business interruption insurance protections. Additional coverage options include:

Civil authority: Pays you when the government blocks off access to your business because of damage to something nearby.

Alterations and new buildings: Pays you if your business is damaged by alterations to your building or construction nearby.

Interruption of computer operations: Pays you if a computer virus or something else causes the destruction or corruption of your company’s electronic data.

Does business interruption insurance have a deductible?

Business interruption insurance usually doesn’t start paying out until 72 hours after the damage occurs. This is essentially your deductible — three days of lost revenue.

Business interruption insurance coverage typically ends 30 days after property repairs are complete or after 12 months.

If damage to your building, equipment or inventory would force your business to shut down or operate at reduced capacity, business interruption coverage is a good idea.

However, if your team could work remotely or if you don’t manufacture your own items, you may be able to get by without it.

The easiest way to get business interruption insurance is as part of another insurance policy.

If you have 100 or fewer employees or annual revenue below $5 million, consider a business owner's policy. These policies usually include business interruption coverage along with other basic protections, like general liability insurance and commercial property coverage. However, some industries (such as restaurants) may not be eligible for a BOP due to their specific risks.

If you own a larger business or valuable pieces of property, you likely need commercial property insurance on its own, not as part of a BOP, so you can modify the coverage to meet your specific needs. If that’s you — whether you own a dentist’s office or a commercial kitchen — check whether your policy already includes business interruption insurance and talk to your insurer about adding it if it doesn’t.

Virtually all business insurance companies sell commercial property insurance and business owner’s policies. Get multiple quotes to see which policies include business interruption insurance and find coverage at the best price.

» Get coverage: NerdWallet’s picks for the best small-business insurance companies

On a similar note...

Business income coverage explained

Business income insurance coverage keeps your business running if your physical location is damaged to the extent that it keeps you from serving customers and making money.

• Backed by the best
• 4.5/5 stars from 1722 reviews
• Most Innovative Companies 2021
• A-rated Insurance i

What is business income insurance?

Must-know business income insurance terminology, what does business income insurance cover, what does business income insurance exclude, how do you get business interruption insurance, protect your livelihood with business income insurance, save up to 36% on business insurance from thimble..

It’s hard enough being a small business owner when everything is going swimmingly. A disaster or an accident that forces you to temporarily shut down can completely sink your finances. Business income insurance gives you a financial life preserver when a physical loss puts your business in rough waters.

Business income insurance protects your business from unexpected loss of income if physical damage to your property prevents you from operating for an extended period of time.

Business income insurance coverage keeps your business running if your physical location is damaged to the extent that it keeps you from serving customers and making money. The causes of loss can include damage from a fire, vandalism, or a covered natural disaster.

We’re the first to admit it — insurance is confusing! To help navigate your policy, here’s a quick and easy glossary on business income insurance terms.

• Business income – The net profit your business earned during a set time
• Business income coverage – Provides compensation for business income (and some operating expenses) when the cause is a covered peril
• Business Owners Policy (BOP) – A BOP bundles commercial property insurance, general liability insurance and business interruption coverage in one policy
• Direct physical loss – Damage to insured tangible property, whether visible or not, that renders it unusable for its intended purpose
• Period of restoration – The time required to get a property back up and running again after a direct physical loss or the time it takes to temporarily relocate your business

Business income insurance covers various expenses while your business is shut down or impacted by a direct physical loss, such as:

• Lost revenue because of your business closure or its diminished ability to produce
• Costs to temporarily relocate your operations while your premises are unusable
• Wages for employees
• Tax payments
• Loan payments (including payments on auto and equipment loans associated with the business)

Business interruption insurance will typically cover losses incurred during the “restoration period.” The restoration period is how long it takes to get back to normal business operations. For example, if you own a hairstyling business and fire damages your salon, you won’t be able to work there until your building and your styling equipment are restored.

Your BOP will cover income lost because you can’t serve your customers without a safe location. It could also cover the costs of paying your salon receptionist while you’re out of commission, continued costs such as rent and utilities and discrepancies between your normal revenues and what you make while you’re re-establishing your business after the loss. It can also help pay for your relocation to another salon while repairs are being made to your damaged location.

Business income insurance coverage covers income loss related to physical property damage. However, it doesn’t necessarily include business slowdowns or shutdowns due to intangible causes.

For example, many businesses shut down or saw lighter traffic because of the pandemic . However, because COVID-19 did not inflict physical damage (like the loss of a building or facility) on the business, it would likely not be a covered situation. You may, however, benefit from BOP coverage if your business closes because of a mandatory government-enforced shutdown or lockdown. Furthermore, some insurers have updated their policies to include pandemic clauses.

It’s also important to understand that business income insurance coverage doesn’t cover the costs to repair or replace your damaged business property — for that, you need commercial property insurance (also included in a BOP). Business income insurance covers additional losses in revenue that come from your small business not being operational.

If water damage ruins your bakery supplies and causes mold to grow in the kitchen, your business income insurance will cover the loss of income as you look for a new or temporary kitchen to run your business and meet your orders. It can also cover the reductions in revenue because you’ve moved out of range of your regular customers and your temporary location has less foot traffic. However, business interruption insurance won’t necessarily cover the cost of restocking the flour and butter.

Thimble’s BOP policies include business income insurance (also called business interruption insurance). When you secure your BOP coverage, you’ll automatically have these valuable safeguards in place.

You can quickly and easily get a quote for a BOP policy through the Thimble app or website. Enter your location and a few details, and you can be covered in minutes.

As a business owner, it can feel like you’re always trying to stay one step ahead to keep your business financially viable and thriving. Business income insurance, included in your Thimble BOP, can give you a little extra slack on the life preserver.

Terri Hitchcock, JD Chief Insurance Officer, Thimble

Terri has 38 years of industry experience and knows a thing or two about insurance, so she reviewed and approved everything on this page.

How do I get business insurance?

Get a quote from Thimble in less than 60 seconds and get your Certificate of Insurance instantly.

Backed by A-rated Insurance i

Best Insurance for the Smallest Businesses

Accredited Business

Subscribe to Greenlight by Thimble.

What do you do.

• Search Search Please fill out this field.
• Building Your Business
• Business Insurance

How Much Business Income Coverage You Need

Beware Coinsurance Penalties

Gregory Boop is an expert on business insurance, an experienced business trial lawyer, and authorized OSHA trainer.

Peopleimages/Digital Vision/Getty Images

If you are a business owner who has decided to purchase business income coverage, you will likely face a dilemma. What limit of insurance should you buy? Answering this question can be tricky as it requires some complex calculations.

Projections Required

Business income losses are calculated based on the amount of income your company actually loses during the time your business is shut down. The most your insurer will pay for a loss is the business income limit of insurance. To choose an adequate the limit, you must make the following two projections:

• The amount of income your company is expected to generate over the next twelve months. Your business income limit is calculated based on your estimate of future revenue.
• The amount of time you will need to repair damaged property after a physical loss. That is, if your business is forced to shut down because property has been damaged, how much time will you need to make repairs and get your business up and running again? In business income insurance, this time period is called the period of restoration .

These projections aren't easy to make. Both are essential for determining the right amount of coverage for your company.

Understanding the Meaning of Business Income

One of the first challenges in choosing a business income limit is understanding the meaning of business income . Under many business income forms (including the standard ISO forms), this term means the sum of the following:

• Net income, meaning net profit or loss before income taxes
• Normal operating expenses that continue after a loss. This includes payroll.

If your business earns income by renting property to others, you can either include or exclude your rental income in your calculation of business income. When rental value is excluded in the calculation, no coverage will be provided for a loss of rental income. If your company generates all of its income from rental properties, your business income will consist of rental income only.

Calculating Your Business Income

The most accurate way to project your 12-month income is to use a business income worksheet. You can use the standard ISO worksheet or one prepared by your insurer. If you need a worksheet, ask your agent or broker to obtain one for you.

The worksheet outlines a step-by-step process for calculating your business income exposure. The first step is to determine how much income your business generated in the previous twelve-month period.

Next, you estimate your income for the future twelve months. You can make your projection by adjusting your 12-month historical figures to reflect any changes you expect over the coming year. For instance, if you expect your sales to increase by 10 percent, you can increase your income projection accordingly.

Some business owners may find a business income worksheet bewildering. If the worksheet seems too confusing, ask your accountant to complete it for you.

Projecting the Period of Restoration

Once you have completed your 12-month income projection, you need to estimate the period of restoration. To protect your business, your estimate should be based on a worst-case scenario.

For example, suppose you own a building in which you operate a warehouse. If the building is destroyed by a fire or a tornado, how much time will you need to get your business running again? Reconstructing a building involves many steps.

First, an insurance adjuster will evaluate the loss. Next, you'll need an architect to design a new building and a contractor to do the construction. Once you've considered all the steps involved in rebuilding, you can estimate how much time they will take. Your estimated period of restoration may be six months, a year, or longer.

Beware Coinsurance Penalties!

Many business income forms include a coinsurance clause . This clause imposes a penalty if the limit on your policy is less than the required amount. Coinsurance applies to your policy if a coinsurance percentage is listed in the declarations. The percentage may be anywhere from 50% to 125%. It indicates the amount of insurance you must carry to avoid a penalty. 

For example, suppose that you have purchased business income coverage based on an income projection of $1 million. Your policy includes a coinsurance requirement of 80%. To avoid a penalty, you must purchase a limit of at least $800,000 (.80 X $1 million). You purchase only $700,000 as a cost-saving measure.

Three months into your policy period a fire breaks out in your warehouse. The fire damages the building, forcing you to shut down your business for several weeks. You suffer a $175,000 income loss due to the shutdown. You have under-insured your business income exposure by $100,000. Here's how your insurer calculates your loss payment:

Maximum loss payment = loss amount X (limit purchased/ the limit required) 

Amount paid by your insurer pays = $175,000 X (700,000 / 800,000) or $153,125

You must pay the remaining $21,875 yourself. This amount represents the coinsurance penalty. You can avoid a penalty by purchasing the required amount of business income coverage. Another option is to avoid coinsurance altogether by purchasing business income coverage on an agreed value basis .

Premium Adjustment Endorsement

As noted above, it is important to purchase enough business income coverage to avoid a coinsurance penalty. Yet, it is also possible to purchase too much insurance. If the limit you purchase exceeds the amount required by the coinsurance clause, you will have wasted money on unused insurance. The Premium Adjustment Endorsement provides a solution to this problem.

The endorsement provides a refund if your business income limit exceeds the amount required by the coinsurance clause. You must submit two reports of your business income values to your insurer. One must be filed when your policy begins (or when the endorsement is attached).

The second must be submitted within 120 days of the date your policy ends. Your insurer will compare the limit you purchased to your required limit based on your actual values. If the limit you purchased exceeds the required limit, your insurer will return the excess premium.

• Starting a Business

Our Top Picks

• Best Small Business Loans
• Best Business Internet Service
• Best Online Payroll Service
• Best Business Phone Systems

Our In-Depth Reviews

• OnPay Payroll Review
• ADP Payroll Review
• Ooma Office Review
• RingCentral Review

Explore More

• Business Solutions
• Entrepreneurship
• Franchising
• Best Accounting Software
• Best Merchant Services Providers
• Best Credit Card Processors
• Best Mobile Credit Card Processors
• Clover Review
• Merchant One Review
• QuickBooks Online Review
• Xero Accounting Review
• Financial Solutions

Human Resources

• Best Human Resources Outsourcing Services
• Best Time and Attendance Software
• Best PEO Services
• Best Business Employee Retirement Plans
• Bambee Review
• Rippling HR Software Review
• TriNet Review
• Gusto Payroll Review
• HR Solutions

Marketing and Sales

• Best Text Message Marketing Services
• Best CRM Software
• Best Email Marketing Services
• Best Website Builders
• Textedly Review
• Salesforce Review
• EZ Texting Review
• Textline Review
• Business Intelligence
• Marketing Solutions
• Marketing Strategy
• Public Relations
• Social Media
• Best GPS Fleet Management Software
• Best POS Systems
• Best Employee Monitoring Software
• Best Document Management Software
• Verizon Connect Fleet GPS Review
• Zoom Review
• Samsara Review
• Zoho CRM Review
• Technology Solutions

Business Basics

• 4 Simple Steps to Valuing Your Small Business
• How to Write a Business Growth Plan
• 12 Business Skills You Need to Master
• How to Start a One-Person Business
• FreshBooks vs. QuickBooks Comparison
• Salesforce CRM vs. Zoho CRM
• RingCentral vs. Zoom Comparison
• 10 Ways to Generate More Sales Leads

What Is Business Interruption Insurance?

Table of Contents

An unforeseen adverse event, such as a fire, can devastate your small business’s operations. Although standard property insurance may cover specific types of property damage, business interruption insurance (also known as business income insurance) fills in the gap, addressing lost income and other issues that arise if your business shuts down unexpectedly.

Editor’s note: Looking for the right liability insurance for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

Here’s what business interruption insurance covers, how it works and how to obtain this coverage for your small business. 

What is business interruption insurance?

Business interruption insurance kicks in when a business can’t operate normally because a specified peril caused physical property damage, rendering the business inoperable. It covers operating expenses and other lost income for a specific period after the business shuts down. The policy spells out the type of unforeseen events that qualify for coverage.

You can obtain this type of business insurance as a stand-alone policy from any of the best liability insurance providers. You can also include it in your business owner’s policy (BOP) or purchase it as an insurance rider or endorsement to add to a commercial property insurance policy or package.

What does business interruption insurance cover? 

Most business interruption insurance providers typically cover the following perils: 

• Falling objects

You must read your business interruption insurance policy documents carefully to understand precisely which perils your insurer covers. Here’s an example:

“We will pay for the actual loss of business income you sustain due to the necessary suspension of your ‘operations’ during the period of ‘restoration.’ The suspension must be caused by the direct physical loss, or damage, to property at premises … The loss or damage must be caused by or result from a covered cause of loss.”

Typical business interruption insurance policies include the following coverage areas, which may deviate slightly according to a carrier’s formula for calculating financial losses:  

• Lost revenue based on prior financial records
• Mortgage, rent and lease payments
• Employee payroll
• Taxes and loan payments due during the covered period
• Office relocation costs if the business must move to a new or temporary location due to physical damage to the business premises

Types of business interruption insurance

Small business owners should understand business interruption insurance types to know what coverage best suits their small business. Different policy types may include or exclude specific items. Below are common coverage options for business interruption insurance.

Business income coverage

Business income coverage replaces lost income and covers ongoing expenses when a business temporarily shuts down due to a covered loss. It addresses revenue loss, payroll, rent, taxes and operational costs incurred during the closure period.

Extra expense coverage

Extra expense coverage helps with costs not covered by property insurance as your business recovers from a disruption. This financial support helps businesses stay afloat during repairs, ultimately staving off a permanent closure. 

Contingent business interruption coverage

Contingent business interruption coverage safeguards a business against losses resulting from third-party vendor disruptions. For instance, if a hurricane floods a supplier’s warehouse to the point of needing to pause equipment deliveries, this type of insurance would compensate for any income lost during the closure. 

Civil authority coverage

Civil authority coverage protects a business’s losses from closures or restrictions imposed by the government. While property insurance covers a closure due to damage, it may lack income coverage for any loss in revenue after the closure. Including civil authority coverage further extends business interruption coverage but often comes with time limits and a waiting period.

Business interruption insurance example

Let’s say a fire damages your warehouse, leaving the building uninhabitable and destroying merchandise already packaged to send to customers. There are two primary ways business interruption coverage can reimburse you:

• Reimbursements for lost income: Business interruption coverage can help reimburse your business for lost income from destroyed merchandise (typically minus prepaid expenses). Insurers may base reimbursement amounts on a business’s pre-loss earnings. Lost earnings – the actual loss sustained – are equal to revenue minus ongoing expenses.
• Reimbursements for extra expenses: Business interruption coverage could reimburse your business for additional expenses during the restoration period that wouldn’t have occurred without a physical loss to the business’s actual or personal property due to the covered peril. For instance, if you must temporarily relocate your business because of the fire, the cost of rent at the temporary location could fall under this category. You can also use extra expense reimbursements to pay overtime, if necessary, to restore the operations. 

Carefully review your business interruption insurance policy because the insurer will have its own specifics on calculating lost income. Accounting criteria for lost income and expenses can include the following:

• Net income (net profit or loss before income taxes) that would have been earned or incurred by the insured party if the business were fully operational 
• Normal operating expenses incurred, including ongoing payroll, vendor and lease obligations, that continue despite the operational shutdown

What is a restoration period?

Your business interruption coverage likely has a restoration period – the time your policy will help pay for lost income and extra expenses while you reconstruct or restore the property to its original condition. 

Read your policy documents to understand when your restoration period starts and how long it lasts. To qualify for insurance reimbursement, the restoration period typically begins when the peril occurs and ends after a reasonable amount of time for the property to be restored and operations to fully resume.

For example, if your business was damaged on Oct. 1, you’d obtain business interruption coverage benefits until Oct. 1 of the following year, even if your policy expires before then. Your policy might end because your business was heavily damaged, and you may not have a business to insure. 

If your business’s building repairs aren’t completed before the 12-month restoration period ends, your business interruption coverage will expire. This means you’d stop receiving reimbursement for lost income, for example. Check your individual policy for specifics.

Endorsements and extensions

When reviewing your business interruption coverage with a broker, you may want to discuss whether the following overages are included or can be added with an endorsement:

Extended period endorsement

Business owners experiencing difficulty during the restoration period can seek an endorsement that includes a 30-day extended restoration period provision. 

For example, if an insured business needs more time to restore the property beyond the 30-day limit, it can buy an extended period of optional indemnity endorsement for various periods, ranging from as little as 30 days or any multiple of 30 days up to 720 days. Check with your provider for specifics. 

Coverage extensions

A coverage extension provides insurance for business income losses resulting from specified events, such as service interruption, contingent business interruption, leader property interruption and interruption by civil or military authority (for example, if a local, state or federal governmental entity restricts access to your property). A sublimit typically applies for each additional coverage. 

You can include a service interruption extension in the policy, so ask your insurance provider for details. A service interruption extension typically provides business income coverage arising from direct physical loss, damage or destruction to any utility service’s transmission lines and related plants, substations and equipment supplying services to an insured business. 

Restrictions may apply, such as waiting periods, distance limitations, the exclusion of certain perils, such as earthquakes, and exclusions for overhead and transmission lines. The owners, managers or operators of such utilities or services are not named as insured under the policy. Again, check your policy specifics. 

Loss limits and exclusions 

When a business income loss occurs, an insured business is obligated to take reasonable steps to prevent or minimize this loss and any further losses. Expenses incurred to reduce that loss may be covered under the policy as part of the business income loss as long as these expenses don’t exceed the actual loss. 

For instance, if there is a business loss of $200 associated with the interruption of business operations, the insurer could reimburse $100 to reduce the loss but will not reimburse the business $100 if the claim is reduced by $50. If the business incurs other expenses above this claim amount to continue operating the business, those could be covered under an additional expense provision if one is included in the insurance policy. 

Policy specifics

It’s crucial to note policy verbiage and specifics. For example, insurer CNA’s policy details require “a direct physical loss” or damage that interrupts your business to qualify for coverage. Terms and exclusions may also limit or preclude coverage. 

This “direct physical loss” and exclusions verbiage may determine whether the policy is upheld or denied in court. 

Manufacturers should take note of exclusions for losses associated with pollutants and contaminants and information about deductibles, waiting periods and policy limits. This information is on the declarations page or within the section detailing your coverage.

Who should get business interruption insurance? 

Retailers and businesses in the manufacturing and service industries should consider business interruption insurance. Any business that provides a service or goods should also consider this coverage. 

Speak with an insurance representative or agent about your specific business. You should consider several factors when opting for business interruption insurance, including the following: 

• Any potential risk associated with your building’s location
• Safety protections 
• Added precautions to secure your premises, such as security cameras , sprinkler systems and fire alarms 
• Potential temporary locations for your business

How much does business interruption insurance cost?

As with any business insurance policy, costs depend on underwriting standards, your business’s size and numerous other factors, including the following: 

• Number of employees
• Amount of coverage
• Prior loss experience
• Geographical area

Contact an insurance broker or agent for specific business interruption insurance quotes. 

Business interruption insurance premiums usually range from $40 to $130 monthly. Rates can be higher for businesses with high liabilities. 

Where can I buy business interruption insurance? 

You can purchase business interruption insurance via major insurers that cover commercial liability. Before purchasing a stand-alone policy for business interruption insurance, find out if you have existing coverage. 

If you already have a BOP with your insurance company, check the policy details to see if business interruption coverage is included. Also, see if your general liability policy has an endorsement for business interruption insurance. 

Business interruption insurance typically has a coverage limit, the maximum amount your insurer will pay toward a covered claim. You’ll pay out of pocket for any financial losses that exceed your coverage limit, so ensure the coverage amounts you elect are appropriate for your business, and speak with your insurance agent if you need additional coverage.

As always, discuss any concerns with your insurance agent, and refer to your company’s risk management plan to ensure adequate coverage. 

Nicole Urbanowicz contributed to this article.

Get Weekly 5-Minute Business Advice

B. newsletter is your digest of bite-sized news, thought & brand leadership, and entertainment. All in one email.

Our mission is to help you take your team, your business and your career to the next level. Whether you're here for product recommendations, research or career advice, we're happy you're here!

• Government & Policy

U.S. COVID-19 Stimulus and Relief

A breakdown of the fiscal and monetary responses to the pandemic

• Search Search Please fill out this field.

Impact on the U.S. Economy

U.s. monetary policy.

• Discontinued Fed Programs

U.S. Fiscal Policy

Executive actions.

• Package 3.5

Supplementary Measures

The bottom line.

Gabe Alpert is a financial journalist and former Editor at Investopedia.

The COVID-19 pandemic impacted the U.S. and global economies. The U.S. government responded to the crisis with policies implemented during the Trump and Biden administrations to provide fiscal stimulus to the economy and relief to those affected by the global disaster. The Federal Reserve used monetary stimulus measures to complement the fiscal stimulus.

Key Takeaways

• The COVID-19 pandemic impacted the U.S. and global economies.
• The U.S. government and the Federal Reserve provided fiscal stimulus and relief programs.
• Monetary policy, interest rates, quantitative easing (QE), and lending programs were used to stimulate the economy.
• Eviction and foreclosure moratoriums, paycheck protection, student loan forbearance, and stimulus checks were implemented.

The pandemic began in February 2020 and was a catalyst for recession . The COVID-19 crisis pushed the U.S. stock market into bear market territory in March 2020, with the S&P 500 unable to recover to pre-pandemic highs until June 2020. The U.S. unemployment rate rose as high as 14.7% in April 2020, the highest since the Great Depression.

The U.S. economy, measured by real inflation-adjusted gross domestic product (GDP) , fell by 32% in the second quarter of 2020. GDP rebounded in the third quarter and ended the year with an increase of 4.0% year over year (YOY) .

The Fed’s stimulus measures fell into three basic categories: interest rate cuts, loans and asset purchases, and regulation changes. Loans and asset purchases were general purchases made as part of quantitative easing (QE) and repurchase operations where the Fed buys assets directly.

The Fed also created specific lines of credit and programs to finance loans from the Primary Market Corporate Credit Facility (PMCCF) through special purpose vehicles (SPVs) . It then lends money to companies through the SPV, which uses the money to fund operations.

Interest Rates

The Fed cut its target range for the federal funds rate twice during March 2020, first by 0.50% to a range of 1% to 1.25%, then by 1.00% to a range of 0% to 0.25%. The Fed had not moved interest rates in increments greater than 0.25% since the Great Recession . On March 15, 2020, the Fed also cut its discount rate , another key interest rate, by 1.5%, down to 0.25%.

Following the pandemic and in the wake of recovery, the Fed made a series of dramatic increases to the Federal Funds Rate in 2022 and 2023 to combat rising inflation.

Quantitative Easing (QE) and Repo Operations

On March 12, 2020, the Fed expanded its repurchase agreements , where the Fed buys assets and sells them back at a later date, by $1.5 trillion, then added another $500 billion four days later to ensure enough liquidity in the money markets. Repo operations effectively allowed the Fed to loan money to banks.

Asset-purchasing programs like quantitative easing (QE) were implemented. The Fed directly buys U.S. Treasuries and mortgage-backed securities (MBS) to increase the supply of money and influence inflation. The Fed, which implemented the program during the Great Recession, restarted it on March 15, 2020.

In late 2021, the Fed reduced QE through  tapering in response to a strengthening economy and rising inflation. These purchases totaled $120 billion per month. In March 2022, the Fed reversed course with a period of quantitative tightening to combat record inflation caused by low unemployment, pent-up consumer demand, and supply chain issues.

Discontinued Federal Reserve Programs

The Fed set up several new lending programs, now discontinued, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act using funds from the U.S. Treasury Department’s Exchange Stabilization Fund (ESF) as seed capital and entirely on its own.

Paycheck Protection Program Liquidity Facility (PPPLF)

The Fed launched the Paycheck Protection Program Liquidity Facility (PPPLF) on April 9, 2020, in concert with the CARES Act. This program lent money to banks so they could, in turn, lend money to small businesses through the Paycheck Protection Program (PPP). On April 30, 2020, the program expanded the types of lenders that could participate in the program. The program ended on July 30, 2021.

Primary Market Corporate Credit Facility (PMCCF) and Secondary Market Corporate Credit Facility (SMCCF)

On March 23, 2020, the Fed created the Primary Market Corporate Credit Facility (PMCCF) to buy corporate bonds to ensure corporations could obtain credit. It initiated the related Secondary Market Corporate Credit Facility (SMCCF) , which bought corporate bonds and bond exchange-traded funds (ETFs) on the secondary market.

The SMCCF started purchasing bond ETFs on May 12, 2020, and individual bonds to create a “broad, diversified market index” of individual U.S. corporate bonds on June 16, 2020. The combined purchase limit for the programs was $750 billion.

The Treasury Department contributed $75 billion in initial capital to these two programs from the ESF: $50 billion for the PMCCF and $25 billion for the SMCCF. The premise was that these programs made banks more willing to lend to corporations because they knew that they could sell the loans to the Fed. Both programs stopped purchasing bonds on Dec. 31, 2020.

Term Asset-Backed Securities Loan Facility (TALF)

On July 28, 2020, the Fed resurrected another Great Recession program: the Term Asset-Backed Securities Loan Facility (TALF) , back-dated to March 23, 2020. It made up to an initial $100 billion in loans to companies and took asset-backed securities (ABS) as collateral. This included a variety of securities, such as those based on auto loans, commercial mortgages, or student loans.

On April 9, 2020, the Fed expanded the ABS types that could be purchased. The Treasury Department’s ESF made a $10 billion initial equity investment in the SPVs. The program stopped making new loans as of Dec. 31, 2020.

Main Street Lending Program

On March 23, 2020, the Fed announced the Main Street Lending Program , which set up an SPV to purchase up to $600 billion in small- and medium-sized business loans. Under the plan, the Fed purchased a 95% stake in each loan, with the bank keeping 5%. To qualify, businesses needed 10,000 or fewer employees or up to $2.5 billion in 2019 revenue.

On July 17, 2020, the Fed extended the program to nonprofit organizations that didn’t have endowments larger than $3 billion, had fewer than 15,000 employees or less than $5 billion in 2019 revenue, and met several other additional requirements. The program purchased stakes in both new loans and loan extensions.

Under the CARES Act, the Treasury Department planned to make a $75 billion equity investment in the SPV. The terms of the loans were five years, with interest deferred for one year and principal payments deferred for two years. On Oct. 30, 2020, the Fed reduced the minimum size of the loans that the program would purchase. The program ended on Jan. 8, 2021.

Municipal Liquidity Facility (MLF)

On April 9, 2020, the Fed launched the Municipal Liquidity Facility (MLF) , which purchased up to $500 billion of short-term notes issued by:

• The 50 states and the District of Columbia
• Counties with at least 500,000 people
• Cities with at least 250,000 people
• Multistate entities (defined by the Fed as an entity created by a compact between two or more states)
• Up to two revenue bond issuers per state, such as airports or utilities

Smaller states could designate their largest city or county to qualify for the facility even if it didn’t meet the population requirement. On Aug. 11, 2020, interest rates for tax-exempt notes were lowered by 0.5 percentage points. The difference between taxable and tax-exempt notes was also lowered. Under the CARES Act, the Treasury Department made an initial equity investment of $35 billion in the SPVs. It stopped purchasing notes on Dec. 31, 2020.

Primary Dealer Credit Facility (PDCF) and Money Market Mutual Fund Liquidity Facility (MMLF)

On March 17, 2020, the Fed relaunched a Great Recession-era program: the Primary Dealer Credit Facility (PDCF) to give loans to primary dealers backed by securities as collateral. There was no set limit to the amount of credit issued.

The Fed opened the Money Market Mutual Fund Liquidity Facility (MMLF) on March 23, 2020. This program lent money to financial institutions so that they could buy money market mutual funds. Like the PDCF, it did not have a specific lending limit.

The Treasury Department gave the MMLF $10 billion of debt credit protection for the program. On May 5, 2020, the central bank said that participation in the MMLF wouldn’t affect the liquidity coverage ratio of participating banks. This program was similar to the Asset-Backed Commercial Paper Money Market Fund (AMLF) program launched in 2008 after the collapse of Lehman Brothers caused a money market fund to fail. The AMLF ended on Feb. 1, 2010. Both the PDCF and the MMLF expired on March 31, 2021.

Commercial Paper Funding Facility (CPFF)

On March 17, 2020, the Fed established the Commercial Paper Funding Facility (CPFF) , which purchased short-term debt known as commercial paper to ensure that those markets stayed liquid. On March 23, 2020, the Fed broadened the variety of commercial paper that it would buy to lower the pricing of the debt.

While it had no limit on the amount it purchased, the CPFF stopped purchasing debt on March 31, 2021, and the SPV continued to be funded until its assets matured. The Treasury Department made a $10 billion equity investment in the CPFF from its exchange stabilization fund (ESF).

Throughout March and April of 2020, the U.S. government passed three main relief packages and one supplemental package.

The House of Representatives passed the $3.4 trillion HEROES Act in May 2020, and the Republican Senate majority proposed but did not pass the $1 trillion HEALS Act in July 2020. In December 2020, Congress passed the Consolidated Appropriations Act (CAA) , which included a $900 billion stimulus bill, providing additional support during the pandemic.

During this period, Presidents Donald Trump and Joseph Biden issued a plethora of executive actions in attempts to provide aid during the pandemic, as have various executive branch agencies. The $1.9 trillion American Rescue Plan Act was signed into law by President Biden on March 11, 2021.

President Trump

On Aug. 10, 2020, President Trump signed four executive actions to provide additional COVID-19 relief.

• The Lost Wages Assistance (LWA) program included a $400-per-week payment to those receiving more than $100 in weekly unemployment benefits, funded by up to $44 billion from the Federal Emergency Management Agency (FEMA) disaster relief fund. The program was retroactive to Aug. 1, 2020, and ended Dec. 27, 2020.
• Moratorium on payments and interest accrual on student loans held by the government until the end of 2020. The moratorium was set to expire on Sept. 30, 2020, but was continuously renewed. Student loan payments restarted in October 2023.
• Executive action instructed the Department of the Treasury and the Department of Housing and Urban Development (HUD) to “promote the ability of renters and homeowners to avoid eviction or foreclosure.” It also instructed the FHFA, which oversees Fannie Mae and Freddie Mac, to “review all existing authorities and resources that may be used to prevent evictions and foreclosures for renters and homeowners.”
• A fourth executive action deferred payroll taxes for Americans earning less than $100,000 from Sept. 1, 2020, to Dec. 31, 2020. The taxes were required to be paid back in 2021.

President Biden

President Biden announced a series of executive actions on his first day of office, Jan. 20, 2021.

• The American Rescue Plan passed on March 30, 2021, and expanded student loan relief to include defaulted privately held loans through Sept. 30, 2021. A 0% interest rate and a pause of collections would affect 1.14 million borrowers who defaulted on a privately held loan under the Federal Family Education Loan (FFEL) program since March 13, 2020.
• The CARES Act created a moratorium on evictions, initially set to expire on July 24, 2020. The moratorium was extended several times, and a final time to July 31, 2021. The conditions for the moratorium depended on adjusted gross income (AGI) , extraordinary medical expenses, an individual's ability to make partial rental payments, and the likelihood of homelessness.

Stimulus and Relief Package 1

The first relief package, the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020, nicknamed Phase One, was signed into law on March 6, 2020 by President Trump. It allocated $8.3 billion to do the following:

• Fund research for a vaccine
• Give money to state and local governments to fight the spread of the virus
• Allocate money to help with efforts to stop the spread of the virus overseas

Stimulus and Relief Package 2

The second relief package, the Families First Coronavirus Response Act (FFCRA) , or Phase Two, was signed into law on March 18, 2020. The law allocated a budget for relief that included the following:

• Providing money for families who rely on free school lunches in light of widespread school closures
• Mandating that companies with fewer than 500 employees provide paid sick leave for those suffering from COVID-19, as well as providing a tax credit to help employers cover those costs
• Providing nearly $1 billion in additional unemployment insurance money for states, as well as loans to states to fund unemployment insurance
• Funding and cost waivers to make COVID-19 testing free

Separately, on March 18, 2020, the Federal Housing Administration (FHA) and the Federal Housing Finance Agency (FHFA) implemented foreclosure and eviction moratoriums for single-family homeowners whose mortgages were FHA-insured or backed by Fannie Mae or Freddie Mac . The eviction moratorium on FHA and other government-backed loans was extended to Sept. 30, 2021. Additionally, the FHFA announced on Sept. 24, 2021, that Fannie Mae and Freddie Mac would continue to offer COVID-19 forbearance to multifamily property owners experiencing hardship due to the COVID-19 emergency.

Stimulus and Relief Package 3: CARES Act

The third—and largest—relief package was signed into law on March 27, 2020. This law, called the Coronavirus Aid, Relief, and Economic Security Act and nicknamed the CARES Act or Phase Three, appropriated $2.3 trillion for many different efforts:

• One-time, direct cash payment of $1,200 per person plus $500 per child
• Expansion of unemployment benefits to include furloughed people, gig workers, and freelancers until Dec. 31, 2020
• Additional $600 of unemployment per week until July 31, 2020
• Waiver of early withdrawal penalties for 401(k)s for amounts of up to $100,000 until Dec. 31, 2020
• Mortgage forbearance and a moratorium on foreclosures on federally backed mortgages for 180 days
• $500 billion in government lending to companies affected by the pandemic
• $349 billion in loans and grants to small businesses through the PPP and the expanded Economic Injury Disaster Loan (EIDL) program
• More than $175 billion for hospitals and healthcare providers
• $150 billion in grants to state and local governments
• $30.75 billion for schools and universities

Stimulus and Relief Package 3.5

A supplementary stimulus package, nicknamed Phase 3.5, was signed into law on April 24, 2020. It appropriated $484 billion, mostly to replenish the PPP and the EIDL, and contained additional funding for hospitals and COVID-19 testing.

Another supplementary measure, the Paycheck Protection Program Flexibility Act of 2020 , which modified the PPP, was signed into law on June 5, 2020. It made the following changes to the program:

• It allowed businesses 24 weeks to spend the money, up from the initial eight-week period.
• It lowered the requirements for loan forgiveness. Businesses now had to spend only 60% of their PPP funds on payroll instead of the 75% previously required.
• It allowed businesses that received PPP loans to delay paying payroll taxes .
• It allowed businesses loan forgiveness if they didn’t rehire workers who refused good-faith offers of reemployment or were unable to restore operations to levels before the COVID-19 pandemic.
• It gave businesses until the end of 2020 to restore their payrolls to pre-crisis levels.
• It increased the loan maturity of PPP loans taken out after June 5, 2020, to five years.
• It extended the time borrowers had to pay back unforgiven parts of the loan.

Stimulus and Relief Package 4

On Dec. 21, 2020, Congress passed the Consolidated Appropriations Act, a $900 billion stimulus and relief bill attached to the main omnibus budget bill. Then-President Trump signed the bill on Dec. 27, 2020, but urged Congress to increase the direct stimulus payments from $600 to $2,000. Its contents included:

• Direct payments of $600 per person, including for dependents ages 16 and younger, to individuals making up to $75,000 per year.
• Eleven weeks of expanded unemployment benefits starting on Dec. 27, 2020. The benefits expanded by $300 a week. The Pandemic Unemployment Assistance (PUA) program for self-employed and contract workers was extended, as was Pandemic Emergency Unemployment Compensation (PEUC) for people who exhausted their unemployment assistance. These programs expired on Sept. 5, 2021.
• $325 billion in help for small business loans, including $284 billion in forgivable PPP loans, $20 billion for EIDL grants for businesses operating in low-income areas, and $15 billion for live cultural venues.
• An extension of the CDC eviction moratorium through Jan. 31, 2021, that expired on Aug. 26, 2021.
• $45 billion for transportation funding, including $15 billion in airline payroll support, $14 billion for transit, and $10 billion for state highways.
• $69 billion to public health measures, including $22 billion in aid to states for testing and tracing, $20 billion to the Biomedical Advanced Research and Development Authority (BARDA), $9 billion to the CDC and state governments for vaccine distribution, and $9 billion to support healthcare providers.
• $82 billion in education funding, including a $54.3 billion K–12 Emergency Relief Fund and a $22.7 billion Higher Education Emergency Relief Fund.
• $25 billion in emergency rent assistance.
• $26 billion in nutrition and agriculture funding, including a 15% increase in Supplemental Nutrition Assistance Program (SNAP) benefits and food bank funding.

Stimulus and Relief Package 5: American Rescue Plan

On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021, implementing a $1.9 trillion package of stimulus and relief proposals. Roughly $350 billion of the total funding was allocated to state and local governments. The key points of the plan as it was passed are the following:

• Direct cash payments of up to $1,400 for individuals earning less than $75,000 a year, plus $1,400 per dependent. The payment decreased for those with income over $75,000, phasing out entirely for individuals with an income of $100,000 a year.
• Increasing the maximum annual Child Tax Credit from $2,000 to $3,000 per child ages 6 through 17 and $3,600 for each child under age 6. The increase lasted through 2021, and payments began phasing out for couples making over $150,000 a year and individuals who are heads of households and made more than $112,500 a year. Legislation to extend the increased credit for 2022 was not passed.
• $300 a week in expanded unemployment insurance through Sept. 5, 2021.
• $10,200 in unemployment benefits were free from federal taxes in 2021 for households with incomes less than $150,000 a year. That figure was doubled for married couples filing jointly .
• $121 billion in funding for K–12 schools.
• $50 billion for the CDC to administer and distribute vaccines, diagnose and track COVID-19 infections, and purchase testing and personal protective equipment (PPE) supplies.
• $39 billion in funding for higher education.
• $30.4 billion in funding for public transit.
• $21.5 billion in emergency rental assistance.
• $25 billion for the Small Business Administration to make grants for “restaurants and other food and drinking establishments.”
• $40 billion in funds for childcare—$15 billion in childcare assistance and $25 billion to help childcare providers continue to operate and meet payroll.
• $15 billion to support airline industry workers.
• $7.25 billion in additional PPP funding, expanding which nonprofits can benefit from the program.
• Any student loan forgiveness passed from Dec. 31, 2020, to Jan. 1, 2026, as nontaxable income.

On March 17, 2020, Treasury Secretary Steven Mnuchin extended the deadline for paying both individual and business taxes for tax year 2019 to July 15, 2020.

On March 20, 2020, then-Education Secretary Betsy DeVos suspended student loan payments and interest accrual for federally held student debt. The Biden administration extended student loan payments and initiated a student loan forgiveness plan. However, the program was rejected by the U.S. Supreme Court in June 2023. In October 2023, student loan payments restarted.

On April 19, 2020, the Trump administration said businesses could delay payment of tariffs for 90 days if they suspended operations during March and April of 2020 and "demonstrate[d] a significant financial hardship."

When Were Stimulus Checks Discontinued?

Federal stimulus checks were discontinued for 2022. However, 16 states implemented stimulus programs for qualifying residents in the form of checks, rebates, refunds, or credits.

What Regulation or Policy Changes Did the Federal Reserve Implement?

The Fed made several technical changes to hold on to less capital so that banks could lend more. The Fed relaxed bank reserve requirements that expired on March 31, 2021. The policy allowed banks to exclude Treasuries and deposits with Fed banks from their balance sheets to calculate reserve requirements, allowing them to lend more. The Fed implemented temporary restrictions on dividends and buybacks in 2020 that ended June 30, 2021, for banks that met capital requirements during the 2021 stress tests .

What Was the White House COVID-19 Preparedness Plan?

In March 2022, the White House released a preparedness plan that secured funding for tests and supplies so that schools, businesses, and child care centers could remain open, paid sick leave for workers affected by COVID-19, and expanded services at public-facing offices.

The COVID-19 pandemic affected households and businesses. Government programs and stimulus policies helped reduce the financial strain on U.S. citizens. Although federal stimulus programs and funds have ended, some states have implemented stimulus programs for residents that meet specific criteria during a period of intense inflation.

National Bureau of Economic Research. “ Business Cycle Dating Committee Announcement June 8, 2020 .”

S&P Global, Market Intelligence. “ Stocks Surge, Comfort Grows as Market’s Fear Gauge Falls to Pre-Pandemic Levels .”

Federal Reserve Bank of St. Louis, FRED. " Unemployment Rate ."

U.S. Bureau of Economic Analysis. “ Gross Domestic Product, 4th Quarter and Year 2020 (Advance Estimate) .”

Board of Governors of the Federal Reserve. “ The COVID-19 Crisis and the Federal Reserve’s Policy Response ," Page 2.

Board of Governors of the Federal Reserve. " Federal Reserve Announces Extensive New Measure to Support the Economy ."

Board of Governors of the Federal Reserve. “ Federal Reserve Issues FOMC Statement, March 3, 2020 .”

Board of Governors of the Federal Reserve. “ Federal Reserve Issues FOMC Statement, March 15, 2020 .”

Congressional Research Service. “ Monetary Policy and the Federal Reserve: Current Policy and Conditions ,” Page 1.

Board of Governors of the Federal Reserve. " Federal Reserve Actions to Support the Flow of Credit to Households and Businesses, March 15, 2020 ."

Federal Reserve Bank of St. Louis, FRED. " Federal Funds Effective Rate ."

Federal Reserve Bank of New York. “ Statement Regarding Treasury Reserve Management Purchases and Repurchase Operations .”

He, Zhiguo and et al. " Treasury Inconvenience Yields During the COVID-19 Crisis .” National Bureau of Economic Research , Working Paper 27416, June 2020, pp. 9.

Board of Governors of the Federal Reserve. " Federal Reserve Issues FOMC Statement, December 15, 2021 ."

Board of Governors of the Federal Reserve. " Monetary Policy Report—July 2021, Part 2: Monetary Policy ."

Congressional Research Service. " U.S. Economic Recovery in the Wake of COVID-19: Successes and Challenges ," Summary Page.

Federal Reserve Bank of New York, Liberty Street Economics. “ The Paycheck Protection Program Liquidity Facility (PPPLF) .”

Board of Governors of the Federal Reserve. “ Federal Reserve Board Announces It Will Extend for a Final Time Its Paycheck Protection Program Liquidity Facility, or PPPLF, by an Additional Month to July 30, 2021 .”

Board of Governors of the Federal Reserve. “ Policy Tools: Secondary Market Corporate Credit Facility .”

Board of Governors of the Federal Reserve. “ Policy Tools: Primary Market Corporate Credit Facility .”

Board of Governors of the Federal Reserve. “ FAQs: Secondary Market Corporate Credit Facility .”

Board of Governors of the Federal Reserve. “ Federal Reserve Board Announces Updates to Secondary Market Corporate Credit Facility (SMCCF), Which Will Begin Buying a Broad and Diversified Portfolio of Corporate Bonds to Support Market Liquidity and the Availability of Credit for Large Employers .”

Board of Governors of the Federal Reserve. “ Primary Market Corporate Credit Facility Fact Sheet .”

Board of Governors of the Federal Reserve. “ Secondary Market Corporate Credit Facility Fact Sheet .”

Board of Governors of the Federal Reserve. “ Term Asset-Backed Securities Loan Facility Fact Sheet ,” Page 1.

Board of Governors of the Federal Reserve. “ Federal Reserve Takes Additional Actions to Provide Up to $2.3 Trillion in Loans to Support the Economy .”

U.S. Department of the Treasury. “ Treasury and Federal Reserve Board Announce New and Expanded Lending Programs to Provide Up to $2.3 Trillion in Financing .”

Board of Governors of the Federal Reserve. “ Periodic Report: Update on Outstanding Lending Facilities Authorized by the Board Under Section 13(3) of the Federal Reserve Act: May 9, 2021 ,” Page 5.

Board of Governors of the Federal Reserve. “ Main Street New Loan Facility ,” Page 1.

Board of Governors of the Federal Reserve. “ Nonprofit Organization Expanded Loan Facility ,” Page 1.

Board of Governors of the Federal Reserve. “ Federal Reserve Board Expands Its Main Street Lending Program to Allow More Small and Medium-Sized Businesses to Be Able to Receive Support .”

Board of Governors of the Federal Reserve. “ Federal Reserve Board Adjusts Terms of Main Street Lending Program to Better Target Support to Smaller Businesses That Employ Millions of Workers and Are Facing Continued Revenue Shortfalls Due to the Pandemic .”

Board of Governors of the Federal Reserve. “ Federal Reserve Extends Termination Date of Main Street Lending Program Facilities to January 8, 2021 to Allow More Time to Process and Fund Loans That Were Submitted to Main Street Lender Portal on or Before December 14, 2020 .”

Board of Governors of the Federal Reserve. “ Municipal Liquidity Facility Fact Sheet ,” Pages 1–2.

Board of Governors of the Federal Reserve. “ Federal Reserve Board Announces Revised Pricing for Its Municipal Liquidity Facility .”

Federal Reserve Bank of New York. “ Municipal Liquidity Facility .”

Federal Reserve Bank of New York. " FAQs: Primary Dealer Credit Facility ."

Board of Governors of the Federal Reserve. “ Money Market Mutual Fund Liquidity Facility Fact Sheet ,” Page 1.

Board of Governors of the Federal Reserve. “ Money Market Mutual Fund Liquidity Facility Fact Sheet ,” Page 2.

Board of Governors of the Federal Reserve. “ Federal Bank Regulatory Agencies Modify Liquidity Coverage Ratio for Banks Participating in Money Market Mutual Fund Liquidity Facility and Paycheck Protection Program Liquidity Facility .”

Board of Governors of the Federal Reserve. “ Policy Tools: Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility .”

Board of Governors of the Federal Reserve. “ Federal Reserve Board Announces Extension Through March 31, 2021, for Several of Its Lending Facilities That Were Generally Scheduled to Expire on or Around December 31 .”

Board of Governors of the Federal Reserve. “ Commercial Paper Funding Facility 2020: Program Terms and Conditions .”

Board of Governors of the Federal Reserve. “ Report on the Federal Reserve’s Balance Sheet: August 2020 ,” Page 13.

Federal Reserve Bank of New York. “ FAQs: Commercial Paper Funding Facility .”

Committee for a Responsible Federal Budget. “ What’s in the $3 Trillion HEROES Act? ”

Committee for a Responsible Federal Budget. “ What’s in the $1.1 Trillion HEALS Act? ”

Congressional Budget Office. " Summary Estimate for Divisions M Through FF, H.R. 133, Consolidated Appropriations Act, 2021, Public Law 116-260, Enacted on December 27, 2020 ," Page 3.

The White House. “ President Biden Announces American Rescue Plan .”

Federal Emergency Management Agency. “ Lost Wages Supplemental Payment Assistance Guidelines .”

U.S. Department of Labor. “ U.S. Department of Labor Announces Guidance for the Lost Wages Assistance Program to Provide Needed Relief to Americans .”

Federal Student Aid. “ COVID-19 Emergency Relief and Federal Student Aid ,” Select “History of the COVID-19 Emergency Relief Flexibilities.”

Federal Student Aid. " Prepare for Student Loan Payments To Restart ."

Trump White House Archives. “ Executive Order on Fighting the Spread of COVID-19 by Providing Assistance to Renters and Homeowners .”

Internal Revenue Service. “ Guidance Issued to Implement Presidential Memorandum Deferring Certain Employee Social Security Tax Withholding .”

U.S. Department of Education. “ Department of Education Announces Expansion of COVID-19 Emergency Flexibilities to Additional Federal Student Loans in Default .”

Supreme Court of the United States. “ Appendix: Constitutional, Statutory, and Regulatory Provisions ,” Page 70a.

The White House. “ Fact Sheet: Biden-⁠Harris Administration Announces Initiatives to Promote Housing Stability by Supporting Vulnerable Tenants and Preventing Foreclosures .”

Federal Register. “ Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19 .”

U.S. Congress. “ H.R.6074 — Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020: Summary .”

Kaiser Family Foundation. " The Families First Coronavirus Response Act: Summary of Key Provisions ."

Federal Housing Finance Agency. “ FHFA Extends COVID-19 REO Eviction Moratorium Through September 30, 2021 .”

Federal Housing Finance Agency. “ FHFA Extends COVID-19 Multifamily Forbearance Through September 30, 2021 .”

U.S. Congress. “ H.R.748 — CARES Act: Text .”

American Medical Association. " Summary of the Paycheck Protection Program and Health Care Enhancement Act (COVID 3.5) ."

Federal Register. “ Business Loan Program Temporary Changes; Paycheck Protection Program—Revisions to First Interim Final Rule .”

Library of Congress. “ United States: President Signs Law to Provide New Economic Stimulus to Address Pandemic Hardships .”

U.S. Congress. “ H.R.133 — Consolidated Appropriations Act, 2021: Actions .”

U.S. Congress. “ H.R.133 — Consolidated Appropriations Act, 2021: Text .”

U.S. Congress. “ H.R. 1319 — American Rescue Plan Act of 2021: Text .”

New York State Department of Labor. “ Expiration of Federal Unemployment and Pandemic Benefits .”

Internal Revenue Service. “ IRS to Recalculate Taxes on Unemployment Benefits; Refunds to Start in May .”

U.S. Department of Education. " Department of Education Announces American Rescue Plan Funds for All 50 States, Puerto Rico, and the District of Columbia to Help Schools Reopen ."

Centers for Disease Control and Prevention. " CDC Museum COVID-19 Timeline ."

Internal Revenue Service. “ Filing and Payment Deadline Extended to July 15, 2020 - Updated Statement .”

U.S. Department of Education. “ Delivering on President Trump’s Promise, Secretary DeVos Suspends Federal Student Loan Payments, Waives Interest During National Emergency .”

The White House. " FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most ."

Supreme Court of the United States. " Biden, President of the United States, et al. v. Nebraska et al ."

U.S. Customs and Border Protection. “ Temporary Postponement of the Time to Deposit Certain Estimated Duties, Taxes, and Fees During the National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak ,” Pages 1–2.

CNBC. " These 16 States Are Issuing Additional Stimulus Checks to Qualifying Residents ."

Board of Governors of the Federal Reserve. “ Temporary Supplementary Leverage Ratio Changes to Expire as Scheduled .”

Board of Governors of the Federal Reserve. “ Federal Reserve Announces Temporary and Additional Restrictions on Bank Holding Company Dividends and Share Repurchases Currently in Place Will End for Most Firms After June 30, Based on Results from Upcoming Stress Test .”

The White House. " National COVID-19 Preparedness Plan: Prevent Economic and Educational Shutdowns ."

• U.S. COVID-19 Stimulus and Relief 1 of 25
• American Rescue Plan (Biden’s $1.9 Trillion Stimulus Package) 2 of 25
• The Consolidated Appropriations Act of 2021: What's in It, What's Not 3 of 25
• The Paycheck Protection Program and Health Care Enhancement Act 4 of 25
• Families First Coronavirus Response Act (FFCRA) Overview 5 of 25
• Main Street Lending Program: What It is, How It Works 6 of 25
• Municipal Liquidity Facility (MLF): What It is, How It Works 7 of 25
• Money Market Mutual Fund Liquidity Facility: Overview 8 of 25
• Primary Market Corporate Credit Facility (PMCCF): Overview 9 of 25
• Secondary Market Corporate Credit Facility (SMCCF): Overview 10 of 25
• Paycheck Protection Program Liquidity Facility (PPPLF): Overview 11 of 25
• Term Asset-Backed Securities Loan Facility (Talf) Overview 12 of 25
• Primary Dealer Credit Facility (PDCF): What It Is, How It Works 13 of 25
• Commercial Paper Funding Facility (CPFF): Meaning, How It Works 14 of 25
• What Is a Special Purpose Vehicle (SPV) and Why Companies Form Them 15 of 25
• Exchange Stabilization Fund (ESF): Meaning, Creation, In Action 16 of 25
• Repurchase Agreement (Repo): Definition, Examples, and Risks 17 of 25
• International COVID-19 Stimulus and Relief 18 of 25
• European Central Bank (ECB): Definition, Structure, and Functions 19 of 25
• People's Bank of China (PBoC): What It Is and Responsibilities 20 of 25
• Bank of Japan (BOJ): Organization, Monetary Policy, Transparency 21 of 25
• Bank of England (BoE): Role in Monetary Policy 22 of 25
• The Reserve Bank of India (RBI): What It Is and How It Works 23 of 25
• What Is the World Bank, and What Does It Do? 24 of 25
• What Is the International Monetary Fund (IMF)? 25 of 25

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

• Cyber Risks
• Pricing Trends
• Mergers & Acquisitions
• Coronavirus
• Pain Management
• Workers Comp Cost Control
• Workplace Safety
• Asia-Pacific
• Latin America
• Best Places to Work
• Rankings & Directories
• Risk Perspectives
• Top 100 Brokers
• White Papers
• Comings & Goings
• Executive Q&A's
• Perspectives
• Editorial Cartoons
• Employee Benefits
• Break Out Awards
• Diversity, Equity & Inclusion Conference
• Innovation Awards
• US Insurance Awards
• Women to Watch
• Women to Watch EMEA
• World Captive Forum
• Current Issue
• DEI Institute
• International

MS Amlin posts net income of $646 million for 2023

U.K.-based insurer MS Amlin Ltd. posted a net income of £509 million ($646 million) for 2023, marking an increase of £316 million from 2022, Reinsurance News reported. The insurer saw net premiums written grow to $4.7 billion from $3.6 billion reported in the year-ago comparative period. It reported an insurance service profit of £457 million, an increase of £347 million from 2022.

Readers Poll

Most read in international.

1. TD Bank could face up to $2 billion in fines over money laundering

2. Specialist Risk Group sold in deal valued at $1.3 billion

3. Hamilton Insurance’s earnings hit by Baltimore Bridge losses

4. Severe storms cause heavy rains and floods in Italy

5. Brookfield Reinsurance posts net income of $337 million

6. Over 100 factories closed after fire breaks out

Sign up now for free access to this article and much more.

If you are already registered with business insurance, click here to login, please tell us a bit more about yourself in order to continue.

• Email Invalid email address.
• Company Name
• Job Function --Select-- Accountant/Finance Advertiser/Marketer/PR Professional Agent (Resale) Agent (Wholesale) Attorney/General Counsel Broker Chief Technology/Information Officer Claims CSuite/Executive Management Human Resources/Benefits Risk Manager Sales Service Provider (TPA, Consultant, Outside Counsel) Student Required
• Type of Business --Select-- Agriculture/Forestry/Fishing Construction Finance, Banking & Real Estate Services Government/Education/NonProfit Hospitality Insurance Manufacturing/Utilities Services Technology Transportation/Communications/Electric/Gas Wholesale/Retail Trade Required
• Customer Service
• Privacy Policy
• Terms of Use
• Career Opportunities
• Event Sponsorship

Reprints and Licensing

• Request Reprints
• Register Online
• Directories & Rankings
• Diversity & Inclusion Institute
• Editorial Calendar
• Magazine Archives
• Risk Perspective
• W2W Foundation

COPYRIGHT © 2024 BUSINESS INSURANCE HOLDINGS

Reinsurance News

Deutsche rück reports 2023 gross premium income of €1.8bn.

22nd May 2024 - Author: Saumya Jain

German reinsurer The Deutsche Rück Group expanded its business in 2023 with gross premium income increasing by 16.8% to just under €1.8 billion, while net premiums earned were up 18.3% at €1.2 billion.

The reinsurer recorded its strongest premium growth in the property insurance segment, accounting for more than two-thirds of gross premiums, contributing 22% to the premium income growth at €1.2 billion. Gross premiums in liability, accident and motor insurance business increased by 5.9% to approximately €392 million.

The firm has disclosed that the gross claims burden in natural hazard lines was significantly lower than in 2022, with the largest nat losses related to the summer storms Kay, Lambert and Denis in Germany, hailstorms TISNA and UNAI in Italy and hurricane Otis in Mexico, with total claims of around €81 million.

The Deutsche Rück Group generated investment income of €81.9 million, a significant improvement on the previous year’s figure of €33.1 million. The reinsurer achieved an operating result before tax of €12 million.

Frank Schaar, Chief Executive Officer, Deutsche Rück Group, commented, “We are very satisfied with this result, because it shows that we are achieving strong, profit-oriented growth not only in our domestic market of Germany, but also in international markets.”

Recently, Deutsche Rück Group has expanded its focus  to include the Maghreb region, the Middle East, Latin America and South, East and South-East Asia, and in the future will also underwrite life insurance business in the Middle East and North Africa.

The reinsurer also further strengthened its equalisation reserves and similar provisions by adding €30.2 million, with the group’s total security, including net claims provisions and the net provisions for future policy benefits increasing to around €2.8 billion.

Schaar concluded, “The strength of our assets works in our favour when it comes to expanding our international business. We expect this strong growth trend to continue in all market regions in 2024.”

Share this:

Recent reinsurance news, twia aims to reduce future reinsurance purchases following record 2024, martello re reportedly targeting around $800m of new equity, growing mga market deserves more oversight, am best says, getting your daily reinsurance news from reinsurance news is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox..

Advertise on Reinsurance News

We have 200,000+ readers every month & 27,000+ email subscribers. Reach the largest reinsurance audience .

• Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
• Do you work in reinsurance?
• Sector eg: broker, laywer
• Comments This field is for validation purposes and should be left unchanged.