# Business interruption insurance

Cover replacing lost income while a closed business gets back on its feet.

A fire or a flood stops the revenue but not the loan payment, and this is the policy that bridges the two. It matters more on a debt-financed acquisition than it did for the seller who owned the place outright, because a debt schedule does not pause for a rebuild. Read the waiting period and the maximum indemnity period rather than the limit alone: a policy that starts paying after 72 hours and stops after 12 months is a different promise from one that starts at 24 and runs 24.

In numbers: A business earning $500k of [SDE](https://searchspheresource.com/glossary/sde) and paying about $8,000 a month in debt service needs cover for both, so a 12-month indemnity period at $45,000 a month of gross earnings is the shape to ask for.

Source: https://searchspheresource.com/glossary/business-interruption-insurance
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