Texans Ask: What is Business Income Interruption Coverage?

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February 2021 brought catastrophic winter weather to Texas. Winter Storm Uri only raged for a few days, February 12 – 16, 2021. But it smashed snowfall and ice damage records. Total claims are still being tallied, but experts think the agricultural damages will be $600 million. Commercial claims are expected to be in the tens of billions of dollars.  If your business had to shut down thanks to Uri, your business income interruption might be covered by insurance. Today, the team at Joe Hancock’s Allstate Insurance is here to explain business income interruption insurance for commercial policies in Texas.

Texans Ask: What is Business Income Interruption Coverage?

Business Interruption Coverage (BIC)

Many — but not all — commercial insurance policies include business interruption or “income interruption coverage.” Allstate’s Business Owner’s Policies (BOPs) usually have this coverage for most small businesses we insure.

This coverage protects the business owner against loss of income if they are forced to shut down due to a covered loss. For instance, if your business were to burn down, your regular income (and your employees’ wages) are covered by insurance while you rebuild your business.

Clearing away debris and building a new business will take some time, so BIC is usually good for a whole year.

Covered Losses / Perils Insured Against

Your business insurance policy covers perils such as:

  • Fire
  • Wind
  • Hail
  • Lightning
  • Smoke
  • Aircraft crashes
  • Civil unrest or riot

We must point out that most business insurance policies will not cover earthquakes or floods, by the way. That’s a different type of insurance.

Learn More About Business Insurance in Texas

Owning a business is hard work, but it’s incredibly rewarding. As a small business owner, you understand better than anyone the unique circumstances and challenges you face. Quality commercial insurance is the key to managing your business with confidence. At Allstate, we know that no two companies are the same.

That’s why we have business insurance policies tailored for many sectors. Contact us today if you need business insurance for:

  • A Food & Beverage Business
  • A Professional Firm
  • Health or Medical Businesses
  • Persona Service Business
  • Retail Stores

We’ll be happy to explain all the coverages we provide, like business income interruption coverage for business owners.

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