What Is Business Interruption Insurance?

Business interruption insurance, also known as "loss of profit insurance", refers to the risk that investors' business will be interrupted or temporarily interrupted due to the loss of material property. It is an expanded type of insurance that is attached to insurances such as property insurance or machine damage insurance. It underwrites the indirect losses of the production and business equipment (buildings, machinery, etc.) of the enterprise caused by natural disasters or accidents caused by the suspension of production or business interruption, that is, the loss of expected gross profit and the need to pay during the business interruption. cost. If necessary, it can also increase the interruption losses caused by third parties, such as suppliers, power plants, and water plants.