Recently our Commercial Lines division celebrated the re-opening of a restaurant we insured that had been gutted by fire. It took more than a year for the business to rebuild, but today things are back to normal, and the customers – and many of the staff members – have returned.

The re-opening reminded me that I haven’t yet blogged about business interruption insurance, which in my mind is one of the most important types of insurance a business can have.

If you’ve never heard of business interruption insurance, it compensates for lost income if a company needs to close due to an unforeseen problem. Depending on the needs of the business, it could cover the profits that would have been earned, and operating expenses, such as electricity. It can also help keep valued employees with unique skill sets on the payroll.

What perils does it insure for? In addition to fire or another peril interrupting your business, you can also customize it to your business. For example, restaurant owners can enhance the policy to include coverage for food poisoning or infectious diseases.

Property insurance will help replace the physical assets of a business after things like fire occur. Business interruption insurance helps to ensure the other key aspects of a business – like customers and key employees – will be intact so the actual business can survive.