Call Us : (630) 325-4000
Call Us : (630) 325-4000
As business owners, we plan for growth, opportunity, and success—but we also know that preparation for the unexpected is essential. A fire can stop operations in a matter of minutes, and even a small blaze can leave lasting damage. That’s why having the right insurance coverage is critical. Too often, we hear from businesses that thought fire insurance alone was enough, only to realize they weren’t protected against the real financial hit: the lost income during downtime. That’s where business interruption insurance comes in. Both coverages serve different but equally important roles, and having one without the other leaves serious gaps.
Fire insurance and business interruption insurance work together to provide complete protection. One covers the cost to repair or rebuild. The other covers the income you lose while your business is unable to operate. At SIA Insurance Group, we help businesses across Illinois build comprehensive policies that cover not only their property but also their ability to stay afloat after a disaster.
Fire insurance is typically part of a commercial property policy. It protects your building, equipment, furniture, and inventory against damage caused by fire, smoke, or water used to extinguish the fire. If you own your building, fire insurance helps pay for repairs or rebuilding. If you lease space, it covers your business contents.
However, fire insurance only covers physical loss. It doesn’t pay for your lost income, your payroll obligations, or the cost of temporarily relocating. That’s where many businesses are caught off guard.
Business interruption insurance (sometimes called business income insurance) is designed to help cover the financial loss caused by a temporary closure. If your operations are suspended due to a covered disaster—such as a fire—this insurance can cover:
This coverage is not automatic. It must be added to your policy or purchased as part of a business owner’s package. It’s one of the most overlooked but valuable types of coverage a business can have.
Having fire insurance without business interruption insurance is like fixing your building but not replacing the revenue you lose while you’re closed. You may have your space fully restored, but if your customers go elsewhere or your cash flow dries up, recovery becomes much harder.
With both types of insurance working together, you can restore your space and keep your business stable while you recover. We’ve seen how this combination has helped our clients in Chicago and throughout Illinois return to operations quickly and without financial distress.
Fire insurance pays to repair or replace your physical property—like your building, inventory, and equipment—after a fire. Business interruption insurance, on the other hand, covers the income you lose and the fixed expenses you still have to pay while your business is closed or operations are reduced due to the fire.
No, business interruption coverage is typically added by endorsement or as part of a broader business owner’s policy. It’s important to confirm with your insurance provider that this coverage is included in your policy. Without it, you could face significant income loss even if your property damage is covered.
Lost income is usually based on your historical financial records—typically your gross earnings before expenses. Insurers may review previous year’s profit and loss statements, tax returns, and monthly sales reports to estimate your losses. It’s important to keep accurate records so the insurer can fairly assess your claim.
Yes. Most policies include a waiting period—often 48 to 72 hours—before business interruption coverage kicks in. This means the policy won’t begin paying for lost income or expenses until after that waiting period has passed. We always review waiting periods with clients to ensure they understand how it affects their protection.
Typically, business interruption insurance only covers losses due to physical damage from a covered peril, like fire or storms. Utility outages are usually not covered unless caused by a covered event. Losses from pandemics are also generally excluded unless specifically added by endorsement, which is rare in standard policies.
Even if you don’t own the building, fire insurance covers your business’s contents—like furniture, computers, tools, and inventory. Business interruption insurance is still important because you may have ongoing lease payments, payroll, or lost sales during the repair period. Your coverage can help keep those expenses paid while your space is being restored.
The coverage period depends on the policy but usually continues until your business is restored to its pre-loss condition, up to a maximum time limit—often 12 to 24 months. Some policies also have a dollar limit. It’s important to understand both the time frame and monetary cap of your policy to ensure adequate protection.
Absolutely. At SIA Insurance Group, we tailor packages that include both coverages and more. We’ll evaluate your risks, your industry, and your budget to build a policy that fits your needs. Whether you’re a small business or a large operation, we’ll help you get the coverage you need to keep moving forward.
At SIA Insurance Group, we work with businesses across Chicago and throughout Illinois to make sure they’re not only covered for property damage, but also prepared to recover financially after a disruption. Fire insurance and business interruption insurance work hand in hand—and together, they protect what you’ve worked so hard to build.
Contact our business fire insurance representatives at SIA Insurance Group today at 630-325-4000 to receive a consultation and business insurance review. We’ll help you understand your options and design a plan that supports the long-term strength of your business.
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