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Business Interruption Insurance
Protect your business during a temporary shutdown.
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How much does business interruption insurance cost?

The cost of adding business interruption insurance to your commercial property insurance or business owner’s policy depends on the value of your business property, among other factors.

Average business interruption insurance costs

Business interruption insurance typically costs businesses between $500 and $1,500 per year. Coverage can cost more if your company has high liabilities, owns valuable commercial property, or earns significant revenue.

How commercial property value affects insurance costs

When a covered incident forces your tech company to close, business interruption insurance can cover the cost of rent and, if necessary, temporary relocation. If your business occupies a valuable commercial property, your policy limit and premium will likely be higher to match the potential cost of a claim.

How revenue affects insurance costs

Businesses that earn more will likely also have a higher policy limit and higher premium. That's because business interruption insurance compensates tech companies for any revenue they lost due to a temporary shutdown.

How policy limits affect insurance costs

Tech companies can choose higher limits on commercial insurance policies to potentially receive a higher payout on a claim. But if you want more extensive coverage, you’ll need to pay higher premiums.

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Tips for saving money on business interruption insurance

Pay your annual premium up front. When you purchase business interruption insurance, you can pay your premium in monthly or annual installments. Paying premium annually usually costs less than monthly payments.

Reduce your risk. Tech companies with no previous claims on their insurance can expect to pay less for business insurance. While some business interruptions are inevitable, you can avoid claims by managing your risks. That could include:

  • Regular building inspections
  • Tightening workplace security
  • Reducing workplace hazards
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How to reduce liability claims against your business

Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.

What do small businesses pay for other policies?

Updated: April 14, 2022