When operations stop, bills don’t.
A covered loss can shut your doors, but your rent, payroll, and loan payments keep coming.
Business Income and Extra Expense Insurance (often called Business Interruption coverage) helps keep your business afloat when you can’t operate — paying lost income, ongoing expenses, and the extra costs needed to get back up and running.
At Horizon Insurance Services in Columbus, Ohio, we help local businesses protect their cash flow and continuity — so a temporary shutdown doesn’t turn into a permanent closure.
Why It Matters
Property insurance covers physical damage, but not the lost revenue or ongoing costs that pile up while repairs are underway.
Business Income and Extra Expense coverage fills that gap, covering:
- Lost profits you would have earned if operations hadn’t been interrupted
- Ongoing expenses — rent, utilities, insurance, or payroll you choose to maintain
- Temporary relocation or expedited repairs to resume operations sooner
- Continuing loan payments or lease obligations
- Extended income loss as revenue ramps back up after reopening
When disaster strikes, this coverage keeps cash flow steady and gives you breathing room to recover.
Common Examples of Covered Losses
- Fire damages your kitchen or warehouse — you’re closed for 3 weeks while rebuilding.
- Burst pipes flood your retail floor — you lose income while flooring and fixtures are replaced.
- Windstorm or lightning shuts down power and damages your electrical system.
- Vandalism destroys key equipment and forces temporary closure.
- Smoke or water damage from a neighboring unit halts operations.
In each case, the policy helps pay your ongoing bills and lost revenue until you’re back in business — and Extra Expense coverage helps you reopen faster.
What’s Not Automatically Covered
Business Income and Extra Expense coverage is powerful — but it only applies when operations are interrupted due to direct physical damage from a covered cause of loss.
It does not automatically cover:
- Utility outages off-premises (unless you add Utility Services – Time Element)
- Supplier or customer shutdowns (add Dependent Property coverage)
- Civil authority closures beyond limited time frames or distances
- Flood or earthquake (unless you carry those perils on your property policy)
- Virus, bacteria, or pandemic-related shutdowns
- Code-upgrade delays (add Ordinance or Law – Increased Period of Restoration)
- Normal market downturns or voluntary closures
We’ll review your triggers, waiting periods, and limits to make sure there are no surprises.
Why It’s Often Paired With
Business Income and Extra Expense insurance works best alongside:
- Commercial Property Insurance – Covers the physical damage that triggers the claim.
- Equipment Breakdown Coverage – Covers the internal system failures that cause downtime
- Cyber or Data Interruption Coverage – For technology-related outages
- Spoilage Coverage – For perishable inventory losses during a shutdown
- Contractor’s Equipment or Inland Marine Coverage – For mobile tools and off-site work
Together, these create a complete continuity plan that covers both the damage and the downtime.
Ready to Protect Your Business Cash Flow?
Let’s make sure a temporary shutdown doesn’t become a long-term setback.
✅ Review your current property and income coverage
✅ Identify waiting periods and coverage triggers
✅ Compare multiple carrier options
✅ Build a business continuity plan that actually works
Serving Columbus, Dublin, Worthington, Grandview, Short North, Clintonville, Hilliard, Upper Arlington, New Albany — plus Cleveland, Cincinnati, Dayton, Toledo, and beyond.
Business Income & Extra Expense FAQs
Who needs business income coverage?
Any business that relies on steady cash flow — restaurants, retailers, contractors, manufacturers, professional offices, and service firms. If closing for even a week would hurt, you need it.
What’s the difference between Business Income and Extra Expense?
Business Income replaces lost revenue and pays ongoing expenses; Extra Expense covers the additional costs to resume operations faster (like renting temporary space or expediting repairs).
Does my property insurance already include this?
Not always. Some policies exclude income loss or limit it with restrictive waiting periods or time limits. We’ll review your current policy to identify any gaps.
How long does it pay out?
Coverage continues through the “period of restoration” — the time reasonably needed to repair or rebuild — and can extend beyond reopening if you add Extended Business Income.
Can I protect against supplier shutdowns or utility outages?
Yes — through optional endorsements like Dependent Property or Utility Services – Time Element. These extend coverage beyond your four walls.
How much coverage do I need?
We’ll analyze your financials, fixed costs, and typical recovery timelines to size the right limits — so you’re covered for the real cost of downtime.
