Questions & answers · Business insurance
My business had to close after a fire. Does business interruption insurance pay for lost income?
Business insuranceOtherTexasChecked Nov 6, 2026
From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-06 · Source: TDI View original ↗
In short
- Business interruption insurance generally covers lost income when a business cannot operate due to direct physical loss or damage by a covered cause.
- Some policies add "civil authority" and "extra expense" coverage.
- Some policies exclude viruses, epidemics and pandemics.
What this means
TDI says business interruption insurance generally covers financial losses that occur when a company can no longer do business due to direct physical loss of or damage to its property by a peril covered by the policy [1].
Some policies extend coverage for "civil authority" orders that restrict access to property because of damage to nearby property by a covered peril. Some policies extend "extra expense" coverage for necessary expenses that would not have been incurred without the direct physical loss or damage [1].
TDI also says some policies exclude viruses, epidemics and pandemics, and that policy language and terms vary [1].
Your next step
Find the "business income" and "extra expense" parts of your policy and the covered perils list. Tell your insurer about the fire in writing. The TDI page gives no filing deadline; read your policy.
Check it yourself
Open the TDI page and read the first six paragraphs.
Where this comes from (1)
[1] TDI · checked 2026-11-06
Business policy language and terms vary. For any insurance, policyholders should read the policy carefully and talk to their insurance company and agent to determine what coverage applies. Business interruption insurance generally covers financial losses that occur when a company can no longer do business due to direct physical loss of or damage to its property by a peril covered by the policy. … Some business interr…
How we found this
We matched your question to 1 official source, quoted the exact lines, and re-checked each quote against its source on 2026-11-06.
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This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.
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