How Much Does Business Interruption Insurance Cost?

Business interruption insurance—also known as business income insurance—helps cover lost income and extra expenses when your operations are forced to shut down due to a covered event. But how much does it cost?

1. Typical Cost Ranges

• Most small businesses pay between $40 and $130 per month for standalone coverage.

• When bundled within a Business Owner’s Policy (BOP), the average cost is about $57 per month, or $684 per year.

• Complete small business insurance packages (including BI coverage) often cost between $1,000 and $3,000 annually, depending on various factors.

2. What Affects the Price?

Several variables determine the cost of business interruption insurance:

• Business revenue – Higher revenue means higher potential losses, which increases premiums.

• Industry type – High-risk industries like restaurants and manufacturing pay more than low-risk office-based businesses.

• Property value and equipment – More valuable assets lead to higher premiums.

• Location – Areas prone to natural disasters or crime may carry higher risk rates.

• Waiting period – A longer deductible period (like 72 hours before benefits kick in) can lower premiums.

• Claims history – A clean record typically results in better rates.

3. Cost Overview Table

4. Tips to Lower Your Premium

To reduce your cost:

• Bundle your policies into a BOP

• Increase the waiting period before benefits start

• Raise your deductible

• Maintain a safe operation and clean claims history

• Pay annually to receive a discount

5. What Business Interruption Insurance Covers

• Lost income when operations are halted

• Fixed costs such as rent, utilities, and employee salaries

• Extra expenses needed to get your business back up and running

• Temporary relocation and overtime pay for employees

• Optional contingent coverage if key suppliers or customers are affected

Final Thoughts

The cost of business interruption insurance ranges from $40 to $130 per month when standalone, or around $57/month if bundled in a BOP. Premiums vary based on revenue, industry, and risk. This coverage is essential to protect your business from income loss during unexpected closures.

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