Business interruption insurance differs from property insurance in that a property insurance policy only covers the physical damage to the business, while the additional coverage of a business interruption policy covers the revenue the business would have earned, based on financial records, had the disaster not occurred. Business interruption insurance was created to cover things like:
*lost revenue
*payroll
*loan repayments including your mortgage or rent and even many lease payments
*due taxes
On the other hand, property damage insurance provides protection for the assets you own, rent or lease for physical damage caused by peril. It covers most financial losses you may experience in the event the physical assets of your business, such as the building, property, equipment or fixtures are damaged.
