Business Interruption Insurance
When the unexpected puts your operations on hold, business interruption insurance helps keep your Colorado company afloat. This vital coverage replaces lost income and covers critical expenses while you recover—so a temporary setback doesn’t turn into a permanent shutdown.
What’s Covered by Business Interruption Insurance
Lost Revenue
Replaces lost income during periods when your business can’t operate due to a covered event, like fire or severe weather.
Operating Expenses
Helps pay ongoing costs such as rent, utilities, taxes, and loan payments—even when revenue has stopped.
Employee Wages
Keeps your payroll running so you don’t lose staff during a temporary closure.
Temporary Relocation Costs
Covers expenses if you need to move operations to a short-term location while your property is being repaired.
Training and Restart Costs
Helps cover retraining employees, equipment recalibration, or marketing expenses needed to resume operations.
Why Business Interruption Insurance Matters in Colorado
Wildfires, Flooding, and Hailstorms
Colorado’s extreme weather events can shut down businesses for weeks—this coverage helps you recover lost income while repairs are underway.
Limited Emergency Reserves
Many small businesses can’t afford to pause operations—business interruption insurance bridges the financial gap.
It Protects Long-Term Stability
Whether you run a storefront in Denver or a service company in Longmont, keeping your business financially stable during a disruption is key to survival.
Colorado Business Interruption Insurance FAQs
What types of events are covered by business interruption insurance in Colorado?
Business interruption typically covers losses due to fire, storm damage, vandalism, or other physical property damage. In Colorado, this may include events like wildfires, hail, or burst pipes from freezing temperatures. Coverage kicks in only when a covered peril forces your business to close or operate at reduced capacity.
Is COVID or pandemic-related closure covered?
Most standard policies do not cover closures due to viruses, pandemics, or government-mandated shutdowns. However, the insurance landscape is evolving, and some specialized riders may offer limited protection. RPM can help review what’s available and whether any business continuity planning solutions are worth exploring.
How is the reimbursement amount calculated?
Insurers calculate your reimbursement based on your actual income and expenses before the interruption occurred. They review financial records to determine average revenue, fixed costs, and typical profit margins. Keeping clean financial documentation is essential for a smooth claim process.
Does this coverage apply if my supplier shuts down?
Possibly. Some business interruption policies include contingent business interruption coverage, which applies if a critical supplier or business partner experiences a shutdown that impacts your operations. It’s especially useful for manufacturers, contractors, and supply chain-dependent businesses in Colorado.
How long does coverage last after a disruption?
Coverage typically continues until your business is back to its pre-loss condition, up to a defined policy limit or time period (often 12 months). You can also purchase extended coverage if your business would need more time to recover. RPM Agency will help ensure the timeline and limits align with your risk profile and recovery needs.