In finance, we look at business income as a line item on a profit/loss statement. In insurance, we see it entirely different. Business Income = Business Interruption Insurance.
When a business suffers a catastrophic loss due to a fire, flood, theft, or vandalism, business property insurance covers the repair; however, business interruption insurance covers the loss of income from the time of the loss to the resumption of business operations. According to the Insurance Institute for Business & Home Safety, at least 25 percent of businesses that close due to a disaster do not reopen.
What does business interruption coverage cover?
Business interruption insurance will cover: revenue lost due to the closure rent for temporary facilities payroll that enables business to continue to pay employees rather than lay them off utility payments (the difference between your utility costs and increases if higher than your normal payments) taxes merchandise or inventory destroyed mortgage payments advertising expenses to announce your temporary location.