A property loss is just the beginning. Lost income is what keeps the business closed.
Business interruption coverage replaces lost income and continuing expenses when a covered property loss forces a closure. The exposure is often larger than the property loss itself — payroll, rent, debt service, and customer attrition continue while revenue stops. The accuracy of the limit, the indemnity period, and the dependent properties scheduled all materially affect what the policy actually pays.
Most business interruption programs aren’t underpriced. They’re under-sized. Limits set against last year’s revenue with no growth assumption, indemnity periods that assume an unrealistic reopening timeline, missing extra expense coverage, no dependent business interruption for critical vendors or suppliers — these are the gaps that show up only after the loss has already happened.
At Avanti Group, we run a Business Risk Diagnostic™ before we build any business interruption submission. We map your revenue, your continuing expenses, your realistic reopening timeline, and your dependencies — and make sure the policy reflects what a real recovery actually costs.
Who We Work With
We place business interruption programs for businesses across Iowa and the Midwest, including:
- Restaurants and hospitality operators
- Retail and e-commerce businesses
- Manufacturers and distributors
- Healthcare facilities and medical practices
- Professional services firms
- Property owners with rental income
- Hotels and short-term rental operators
- Any business where a property loss would interrupt revenue
The Coverage Lines That Matter Most
A complete business interruption program covers more than a single revenue figure. The components we evaluate and place include:
- Business Income / Loss of Earnings — net income that would have been earned plus continuing operating expenses
- Extra Expense — the cost of staying operational (temporary location, expedited shipping, equipment rental) above what would normally be spent
- Indemnity Period — the length of time the policy will pay after a loss; needs to reflect realistic restoration, not optimistic reopening
- Civil Authority — coverage when a government order denies access to your premises (limited duration; specific to property loss in proximity)
- Ingress / Egress — coverage when access to your premises is blocked by physical loss in proximity
- Dependent Properties — coverage when a key supplier, customer, or attraction property suffers a loss that affects your revenue
- Utility Services Interruption — lost income from a utility outage caused by physical damage at the utility provider
- Order of Civil Authority & Ordinance & Law BI — coverage during code-required rebuild beyond the original loss
The Risks Most Business Interruption Programs Miss
Indemnity periods are routinely too short. Operators set 6 or 12 months thinking that’s plenty — then discover during a real loss that permitting, supply chain, contractor availability, and rebuilding occupancy stretch the recovery to 18 or 24 months. We benchmark indemnity periods against realistic, not optimistic, scenarios.
Business income limits are often based on outdated financials. A limit set against three-year-old revenue, with no growth assumption, leaves significant exposure. We update limits at renewal based on current and projected income.
Dependent business interruption is frequently missing. If your largest customer, your sole supplier, or a critical attraction property suffers a loss, your revenue can drop without any property damage to your own premises. Without dependent BI, that loss is uncovered.
Extra expense coverage is undersized. Rebuilding revenue after a loss often requires spending that wouldn’t normally be incurred — temporary locations, expedited shipping, marketing to bring customers back. Extra expense limits are routinely too low to support the actual recovery effort.
How to Get Started
Business interruption insurance isn’t a commodity product. The right program depends on your revenue structure, your continuing expenses, your dependencies, and your realistic recovery timeline. We need to understand your business before we can build the right program for it.
Call our office or use the button below to start a conversation. We’ll review your current program, your financial structure, and your realistic loss scenarios — and let you know exactly where you stand before we ever go to market.