For many Colorado business owners, the term business interruption insurance can feel confusing. It’s often bundled within commercial property or business owner’s policies, yet few know what it truly covers—or when it applies. In times of disruption, that uncertainty can add unnecessary stress. Let’s break it down so you can feel confident in how this coverage works.
What Is Business Interruption Insurance?
Business interruption insurance is designed to help replace lost income if your operations are temporarily shut down due to a covered loss—such as fire, wind, hail, or another insured event that damages your property. Rather than covering the physical damage itself (your property insurance does that), this coverage helps keep your business financially afloat while repairs are being made.
Commonly Covered Expenses
While every policy is different, here are some expenses that business interruption insurance often helps cover:
- Lost Income: Revenue you would have earned if your business were operating normally.
- Operating Expenses: Things like rent, utilities, and payroll that don’t stop just because your doors are closed.
- Temporary Relocation Costs: Expenses related to moving to and operating from a temporary location.
- Loan Payments: Assistance with meeting financial obligations while income is disrupted.
What’s Not Covered
It’s just as important to know what business interruption insurance doesn’t cover. Typically, policies exclude:
- Pandemics or virus-related shutdowns (unless explicitly added by endorsement).
- Utility outages that occur off your property.
- Property damage not caused by a covered peril (for example, flooding may require separate flood insurance).
- Losses that occur during voluntary closures.
Why This Matters for Colorado Businesses
Colorado business owners face unique risks—from hailstorms along the Front Range to wildfires in mountain communities. These events can cause serious property damage and downtime. Business interruption coverage provides a financial safety net so you can focus on recovery without putting your company’s future at risk.
Key Takeaway
Business interruption insurance can be the difference between weathering a storm—or closing your doors for good. But because coverage details vary, it’s crucial to review your policy carefully and work with an experienced insurance advisor who understands Colorado’s unique risks.
Let’s Talk Coverage
At Conexus Insurance Partners, we help Colorado businesses protect not just their property—but their ability to keep moving forward after a disruption. If you’re unsure about what your business interruption policy actually covers, let’s review it together.
👉 Contact us today for a coverage review and peace of mind.