Call Us : (630) 325-4000
Call Us : (630) 325-4000
As business owners in Illinois, we know how important it is to protect what we’ve built. A fire or other unexpected disaster can bring operations to a halt—and without the right insurance coverage in place, the losses can quickly spiral out of control. Our revenue, customer relationships, and even our long-term stability are all at risk. While physical damage is often the most obvious threat, the income lost during downtime can be just as damaging. That’s why we believe fire and business interruption insurance should be a cornerstone of any risk management plan for Illinois businesses.
Let’s look at how fire insurance and business interruption insurance work together, why they’re essential, and what Illinois businesses need to understand when putting these policies in place.
Fire insurance protects the physical assets of our business—from the building itself to equipment, inventory, and office contents. In Illinois, commercial property insurance policies typically include fire coverage, but it’s important to check the limits, exclusions, and replacement cost valuations.
We always want to be sure that our policy reflects the current value of our business property. Underinsuring can leave us exposed to out-of-pocket costs after a loss. For example, if we’ve recently renovated or purchased new machinery, our policy must reflect those updates.
Fire insurance often includes coverage for:
A fire can take days or weeks to fully assess and remediate. That’s why fire insurance is just one piece of the protection puzzle.
Even if we have fire insurance, the income we lose while our business is closed is not automatically covered. That’s where business interruption insurance comes in. This coverage helps replace lost income when operations are shut down due to a covered disaster, such as a fire.
In Illinois, business interruption insurance generally covers:
Business interruption coverage usually kicks in after a brief waiting period, often 48 to 72 hours. The policy will define a “restoration period,” which is the length of time during which coverage applies. It’s important for us to review this period and make sure it gives us enough time to realistically rebuild or repair.
If our business relies on other vendors or facilities—such as a warehouse, supplier, or manufacturing plant—contingent business interruption insurance may be necessary. This type of coverage applies when our operations are impacted by a loss at a third-party facility.
We may also consider extended business interruption coverage, which continues to provide income after reopening, until revenue returns to pre-loss levels. This can be crucial as we work to regain customers and rebuild operations.
While fire and business interruption insurance are not legally required for every business in Illinois, many landlords, lenders, and vendors require it by contract. In addition to satisfying these obligations, we want to ensure that we’re financially protected if disaster strikes.
To make sure we’re fully covered, we review our policies annually, keep accurate financial records, and update our insurers whenever we make significant changes to our business operations, property, or structure.
Business interruption insurance in Illinois covers income losses when operations are halted due to a covered disaster like fire, wind, or vandalism. It reimburses for lost profits, ongoing expenses, temporary relocation costs, and sometimes taxes or loan payments. It doesn’t cover damage to property—that falls under commercial property insurance. It also doesn’t apply to every type of disruption. Power outages, pandemics, and non-covered property damage typically fall outside the scope of standard policies unless specifically endorsed.
The length of coverage, known as the “restoration period,” typically runs from the date of the loss until the business is reasonably restored, often up to 12 months. Some policies allow for extended coverage to help restore income to pre-loss levels. We always recommend confirming the restoration period in the policy, as recovery time varies depending on the damage, supply chain delays, and how fast repairs can be made.
No, it is not always included automatically. Many Illinois business owners mistakenly assume business interruption coverage is standard in their property policy, but it is usually offered as an add-on or endorsement. It’s essential to ask your insurance provider specifically about this coverage. We always double-check the declarations page to confirm what’s covered and what’s not.
Several factors influence pricing, including the type of business, annual revenue, physical location, building construction, and claims history. High-risk industries like manufacturing or restaurants may see higher premiums due to the potential for larger losses. The length of the restoration period and the coverage limit we choose also affect the cost. We recommend balancing affordability with adequate protection based on the scale and nature of our business.
Standard business interruption insurance does not cover supply chain delays unless we’ve added contingent business interruption coverage. This additional protection kicks in when a key supplier, manufacturer, or distributor suffers a loss that impacts our ability to operate. Illinois businesses that rely heavily on outsourced services or global supply chains should consider this type of policy to prevent major financial setbacks.
We recommend reviewing all current policies with a qualified insurance provider, updating values based on your latest financials and property investments, and confirming that both direct losses (like fire damage) and indirect losses (like income loss) are covered. We also maintain records, back up key documents, and keep disaster recovery plans in place. These steps not only help with claims but may improve your insurability and reduce premiums.
At SIA Insurance Group, we help businesses across Illinois protect what they’ve built with well-structured fire and business interruption insurance policies. These coverages work hand-in-hand to ensure your property is protected and your income remains secure—no matter what disaster hits. Don’t leave your revenue exposed to disaster. Call SIA Insurance Group today at 630-325-4000 to receive a quote and discuss custom insurance solutions that fit your business needs. We serve businesses throughout Chicago and the entire state of Illinois with tailored commercial insurance solutions that protect what matters most.
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