Business interruption coverage can pay your bills while you rebuild. It is also called business income coverage. It can help with lost income and operating expenses while a covered loss keeps you closed. It only pays for causes your property policy covers. With no flood coverage, it does not pay for a flood closing. A power outage from a storm needs its own endorsement.
Scott Insurance Services is an independent agency in Flowood, Mississippi, here since 1954. We write business insurance for shops, restaurants, contractors and other businesses across the state.
When is the peak of hurricane season?
The National Hurricane Center says the season peaks on September 10. Most activity falls between mid-August and mid-October.
On August 6, 2026, NOAA kept its forecast for a below-normal Atlantic season. Its range was still 7 to 13 named storms. A quieter season is not a storm-free one, so August is a good month to read your policy.
- September 10 The season peaks on
Most activity falls between mid-August and mid-October.
Source: National Hurricane Center (NOAA), Tropical cyclone climatology
What does business interruption insurance pay for?
The Insurance Information Institute says it can help with operating expenses during the period of restoration. That includes:
- Lost net income, based on your financial records
- Mortgage, rent and lease payments
- Loan payments
- Taxes
- Employee payroll
It can also include extra expense. That pays costs beyond your normal day-to-day expenses that keep the business going. Examples are a temporary location, overtime pay and leased equipment.
Does it pay if a flood closes my business?
Usually not. Standard commercial property policies exclude flood, and business income coverage excludes flood too. If your property policy does not cover flood, business income will not pay for a flood closing.
Even an NFIP commercial flood policy does not pay for lost income from business interruption. So ask your agent about flood business income options before the season peaks.
Does it pay if the power goes out after a storm?
Only if you add a utility services endorsement, and only for the causes it names. The Insurance Information Institute lists utilities among the things standard business income does not cover.
With that endorsement, a disruption of basic utility services can be covered. The institute's example is winds breaking down a power line. Read the endorsement to see which services and causes it names.
| Cause | Business interruption |
|---|---|
| A hurricane | It can, when the damage comes from a cause your property policy covers. |
| Flood | Usually not. If your property policy does not cover flood, business income will not pay for a flood closing. |
| A power outage from a storm | Only if you add a utility services endorsement, and only for the causes it names. |
Source: Insurance Information Institute, Do I need business interruption insurance?
How long until it starts, and how long does it last?
The Insurance Information Institute says there is typically a 48 to 72 hour wait before it starts. The standard property policy limits the restoration period to 30 days. An endorsement can extend it to 360 days.
How long does it last?
- 30 days The standard property policy limits the restoration period to
An endorsement can extend it to 360 days.
Source: Insurance Information Institute, Do I need business interruption insurance?
Does my business owners policy include it?
A business owners policy, or BOP, puts property, business income and general liability in one policy. Buying them as a package generally costs less than buying each one alone.
Not every business qualifies. Insurers often steer factories, jewelry stores, some restaurants and bars, and auto repair shops to customized or package policies. Those businesses may need to buy the coverages separately. Business income can be added to a commercial property policy by endorsement.
Questions Mississippi business owners ask about business interruption
Does business interruption cover a hurricane?
It can, when the damage comes from a cause your property policy covers. It does not pay for a flood closing if your property policy does not cover flood. Ask your agent about flood business income options.
Does business income start the day I close?
Typically not. The Insurance Information Institute says a 48 to 72 hour wait typically comes before the restoration period starts. Your policy sets the exact wait.
Can I get more than 30 days of business income?
Yes. The standard property policy limits the restoration period to 30 days, and an endorsement can extend it to 360 days.
Can a restaurant get business income on a BOP?
Maybe. The Insurance Information Institute says some businesses, such as restaurants, may be ineligible for a BOP. They may need to buy the coverages separately.
Read your policy before the peak
It is easier to read this part of the policy in August than after a storm. If you send us your policy, we will tell you what it pays and where the gaps are. Because we are independent, we can put quotes from more than one insurance company side by side. You can compare them without any pressure. We can walk you through every detail, so you understand what you are paying for. If you just want the basics, we will tell you which ones you have. The paperwork after a loss can be detailed. If you have a claim and your policy is with us, we will go to bat for you.
See our business owners policy, commercial property insurance, hospitality insurance and flood insurance pages.
Sources
- Insurance Information Institute, Do I need business interruption insurance?
- Insurance Information Institute, What does a business owners policy (BOP) cover?
- FEMA, The ins and outs of NFIP commercial coverage
- NAIC, Small business insurance
- IRMI, Insuring the home-based business, part 3
- National Hurricane Center, Tropical cyclone climatology
- NOAA, NOAA maintains prediction for below-normal Atlantic hurricane season
