Commercial property insurance typically covers any damage to your property due to unforeseen events, such as vandalism, bad weather, natural disasters, and others. However, the policy does not usually protect business owners from any financial losses they sustain from being unable to trade. Therefore, business interruption insurance can be a crucial layer of added protection for business owners.
Suppose you are a property investor and own several apartments damaged by natural events such as storms or earthquakes. Your commercial insurance will pay for repairing the damage, such as roof and drywall restoration. However, the financial damages from lost rental revenue could be astronomical and exceed the physical property damage. In this case, business interruption insurance can come to the rescue, reimbursing you for lost rental income.