Great question — the cost of Business Interruption Insurance depends on several factors, but on average, it typically ranges from $40 to $130 per month for small to midsize businesses when added to a policy like a Business Owner’s Policy (BOP). Here’s a detailed breakdown:
💵 How Much Does Business Interruption Insurance Cost?
🎯 Typical Cost Range
- Small Businesses:
💰 $500 to $1,500 per year
(or about $40–$130/month) - Midsize Businesses:
💰 $2,000 to $5,000+ per year - Larger or high-risk businesses (restaurants, manufacturers, retail chains):
💰 $10,000+ annually, especially with high revenue or large property values
📊 What Affects the Cost?
1. Your Industry Type
Some industries are higher risk (e.g., restaurants, hospitality, construction) and pay more.
- 🧁 Bakery: Low risk = lower cost
- 🧯 Nightclub: High risk = higher cost
2. Business Size & Revenue
The more income you could lose, the more expensive your coverage will be.
3. Location
Businesses in areas prone to natural disasters (floods, hurricanes, wildfires) may pay more or need separate endorsements.
4. Property Value
Higher-value buildings or more expensive equipment = higher potential payout = higher premium.
5. Policy Limits
Higher limits (longer coverage period or higher monthly benefit) = higher premium.
6. Coverage Length
Most policies cover 12 months of lost income, but you can choose longer or shorter terms. Longer periods = more cost.
7. Add-ons & Endorsements
Additional coverage, like:
- 🏚️ Contingent Business Interruption
- 💼 Extra Expense Coverage
- ⚠️ Civil Authority or Utility Services
…will all increase the price slightly.
🧾 Sample Cost Scenarios
| Business Type | Annual Revenue | Estimated BI Cost |
|---|---|---|
| Coffee Shop | $300,000 | $500–$700/year |
| Boutique Retail Store | $750,000 | $900–$1,200/year |
| Restaurant | $1.2 million | $1,500–$3,000/year |
| Light Manufacturer | $5 million | $5,000–$10,000/year |
💡 Pro Tips to Save on BI Insurance
- ✅ Bundle it with your General Liability and Property Insurance in a Business Owner’s Policy (BOP) — it’s usually cheaper.
- ✅ Accurately report revenue and expenses — overestimating may increase your premium unnecessarily.
- ✅ Ask about deductibles and waiting periods — tweaking these can affect the premium.
- ✅ Review coverage annually to match current income levels and expenses.
Would you like a custom estimate based on your business type and location? I can help calculate a rough range for your specific setup!
