Business Interruption
What Is a Business Interruption in Insurance?
Business Interruption (BI) Insurance is designed to replace lost income and pay expenses when a covered event damages your insured location and forces you to pause operations. It steps in when you can’t work and need help keeping the lights on while you rebuild.
- Keeps cash flowing: Helps cover lost revenue, payroll, rent, and essential bills while your doors are closed
- Buys time to recover: Gives you breathing room to repair your space, so you don’t have to rush a reopening before it’s really ready for pets and people
- Customizable: Many policies let you add extra coverage for specific scenarios your business is most likely to face
Heads up: BI coverage is often part of a Business Owners Policy (BOP), a type of insurance we don’t offer through PCI. A BOP is likely more coverage than you need unless you own commercial property. For example, you own a chain of grooming salons, inventory warehouses for your pet store, or a dog training gym.
Small pet businesses might be more interested in business interruption coverage via our Cyber Liability Insurance. This coverage can help you get back on your feet financially after a data breach, phishing scam, or ransomware attack.
What Does Business Interruption Insurance Cover?
In short, business interruption helps replace lost income and bills that pile up while your business is closed — usually after a disaster destroys or damages your building. Here are a few ways BI coverage can help.
When Business Interruption Applies
Business interruption coverage usually kicks in when these three conditions are met:
- A covered event physically damages your insured location. (Think a fire or a burst pipe. Your policy will list all the events that qualify.)
- You can’t operate while repairs happen.
- A waiting period passes. (You often need to let 72 hours pass before your check arrives. Your policy will list the exact wait period.)
What It Can Pay For
- Lost net income you would have earned during the shutdown
- Ongoing expenses like rent, utilities, payroll, and taxes
- Loan payments and reasonable extra costs to prevent more loss (in some cases)
Pro Tip: Business Interruption isn’t designed to cover auto claims for your pooper scooper truck or pet grooming van – that’s Commercial Auto Insurance.
Tips to Get Paid Faster
Follow these steps before and after a setback to make a tough situation easier:
- Save 12–24 months of sales and booking records
- Keep payroll, rent or lease, and utility documents handy
- Track missed appointments and cancellations during the shutdown
- Call your insurer early and follow their claim checklist
Big Takeaway
If your business is forced to close (even for a little while), the income stops, but the bills don’t. Business interruption protects your financial stability if you own a brick-and-mortar store, salon, or boarding space. Coverage lets you safely repair and reopen to the pets and clients you love.
Keep Sniffing Around
- Business Owners Policy (BOP)
- Cyber Liability
- Commercial Auto Insurance
Kyle Jude | Program Manager
Kyle Jude is the Program Manager for PCI, where he helps design and maintain liability coverage specifically for pet professionals. With 10+ years of insurance industry experience, he works closely with carriers, underwriters, and compliance teams to ensure PCI coverage stays accurate, responsive, and relevant to real-world risks. At home, he puts that same expertise to use wrangling his four beloved dogs
Kyle Jude is the Program Manager for PCI, where he helps design and maintain liability coverage specifically for pet professionals. With 10+ years of insurance industry experience, he works closely with carriers, underwriters, and compliance teams to ensure PCI coverage stays accurate, responsive, and relevant to real-world risks. At home, he puts that same expertise to use wrangling his four beloved dogs