Business Interruption Insurance
Protecting income and fixed expenses after an insured business disruption
Business Interruption Insurance operates as an extension to property or machinery insurance. It applies only when insured physical damage occurs at the declared premises. The policy compensates for loss of income and fixed operating expenses during the interruption period until business operations are restored.
Why Business Interruption Insurance Matters
After insured property damage, businesses face ongoing expenses despite reduced or halted operations. Business Interruption Insurance helps maintain cash flow during recovery, supporting fixed costs, contractual commitments, and lender expectations throughout the selected indemnity period.
Key Benefits
Income loss protection
Fixed cost coverage
Recovery period alignment
Cash flow continuity
Reinstatement support
Add-on options available for an extended indemnity period
What’s Typically Covered & What’s Not
- Typically Covered
- Fire damage
- Explosion damage
- Flood damage
- Machinery damage
- Repair downtime
- Typically Not Covered
- Wear tear
- Mechanical breakdown
- Cyber incidents
- Pandemic losses
- Non-damage loss
Who Should Consider Business Interruption Insurance
Business Interruption Insurance covers manufacturing units, production businesses with physical premises, and asset-heavy enterprises where downtime directly affects revenue. It is most relevant for businesses with high fixed costs. The policy may be less critical for digital-first or highly flexible operations with minimal physical asset exposure.
Why Choose Avalani
As IRDAI-licensed insurance brokers in Gujarat, we put your business and needs first. You get customised coverage, verified valuations, claim assistance, and quotes from 20+ insurers for the best value.
Protecting What You’ve Built.
FAQs
What is Business Interruption Insurance?
Covers loss of income and fixed expenses after insured property damage.
Is Business Interruption Insurance in India available on its own?
No. It is issued only as an extension to property or machinery policies.
What is the indemnity period?
The maximum duration for which losses are payable is typically 12 to 36 months.
Is there a waiting period?
Yes. Most policies apply a waiting period of around 72 hours.
Does a property claim need to be admitted first?
Yes. Business interruption claims depend on an admissible material damage claim.
Are supplier or customer disruptions covered?
Only when a contingent extension is taken with named locations.