Running a business in Texas comes with its fair share of challenges—severe weather, equipment failure, or unexpected property damage can all bring operations to a halt. While property insurance can help repair physical damage, it doesn’t cover the income lost during downtime. That’s where Business Interruption Insurance becomes an essential part of a risk management strategy.
At Steve White Insurance, we help business owners across the Lone Star State understand and explore options that can help them stay resilient when unexpected events occur.
What Is Business Interruption Insurance?
Business Interruption Insurance, also referred to as business income coverage, is a type of insurance that may help cover the loss of income a business experiences after a covered event disrupts normal operations. This type of insurance is generally designed to help pay for ongoing expenses like rent, payroll, and utility bills while your business recovers.
While every policy varies, Business Interruption Insurance typically works alongside a commercial property insurance or business owner’s policy (BOP). If a fire, storm, or other covered peril forces you to temporarily close or relocate, this coverage may help sustain your business financially during the downtime.
Why Is Business Interruption Insurance Important for Texas Businesses?
Texas is known for its unpredictable weather and diverse economic landscape. From hurricanes on the Gulf Coast to ice storms in the north, business owners in Texas face a variety of risks that could shut down operations without warning.
Business Interruption Insurance in Texas can be especially valuable for:
- Retailers who rely on foot traffic
- Restaurants with perishable inventory
- Manufacturers with production deadlines
- Service-based businesses with ongoing client obligations
By considering this coverage, Texas business owners may find peace of mind knowing they have financial support to help cover lost income and operating expenses during temporary closures.
What Events Might Trigger Business Interruption Coverage?
Covered events are typically those that are also covered under your property insurance. While coverage details differ by policy and provider, Business Interruption Insurance may activate in the event of:
- Fire or smoke damage
- Storm damage (including wind or hail)
- Vandalism
- Certain types of water damage
- Mandatory government-ordered shutdowns (in some cases)
Natural disasters like hurricanes or floods may not automatically be covered unless you have additional riders or endorsements. Given the weather volatility in Texas, it’s important to review policy details with an experienced agency like Steve White Insurance to explore what options may be available for your specific risks.
How Long Can Business Interruption Insurance Provide Coverage?
The length of time coverage applies is often referred to as the “restoration period.” This period typically begins shortly after the covered event and lasts until the business can reasonably resume normal operations. Depending on the policy, this period may extend for 30 days, 90 days, or even up to a full year.
For businesses in Texas that face extended repair timelines, especially after widespread events like hurricanes, it may be beneficial to explore extended restoration options that can provide a longer cushion during recovery.
What Expenses Might Be Covered?
Business Interruption Insurance may help cover a variety of expenses associated with keeping a business afloat while it’s unable to operate as usual. Commonly covered items may include:
- Lost income based on previous earnings
- Employee wages to help retain staff during closure
- Temporary relocation costs if a new location is needed
- Loan or lease payments that must continue during the closure
- Tax obligations that don’t pause due to operational disruptions
Some policies may also include “extra expense coverage,” which may help with costs associated with minimizing the interruption, like expedited shipping, renting equipment, or leasing temporary office space.
Is Business Interruption Insurance Included in a Business Owner’s Policy?
Many small and medium-sized Texas businesses opt for a Business Owner’s Policy (BOP), which typically combines general liability and property coverage. Some BOPs may include Business Interruption Insurance as part of the standard package, while others may require it to be added as an endorsement.
At Steve White Insurance, we work with businesses throughout Texas to tailor BOPs that fit their operational needs, helping identify whether business interruption coverage is included or should be added separately.
How Do I Know If My Business Needs This Coverage?
While no two businesses are alike, there are a few key factors Texas business owners can consider when evaluating the need for Business Interruption Insurance:
- Would a short-term closure threaten your cash flow or payroll?
- Is your business location vital to operations?
- Do you rely on suppliers or distribution chains?
- Would a forced relocation disrupt customer service or production?
If the answer to any of these questions is “yes,” then it may be worthwhile to explore how Business Interruption Insurance could support your business’s continuity planning.
What Should Texas Business Owners Look for in a Policy?
Because every business is different, it’s important to look beyond price when choosing a Business Interruption Insurance policy. Some things to review and discuss with your agent include:
- Covered perils and exclusions
- Restoration period limits
- Any sub-limits for specific expenses
- Whether civil authority coverage is included
- Availability of extra expense coverage
- Industry-specific needs or risks
Texas businesses—especially those in high-risk regions or with complex operations—may benefit from customized solutions that consider their unique exposures.
How Can Steve White Insurance Help?
At Steve White Insurance, we understand that business doesn’t stop—especially in a dynamic state like Texas. Our team works with a wide range of carriers and policy options to help business owners identify appropriate coverage that fits both their budget and their risk profile.
We take the time to understand your business’s structure, operations, and challenges so we can help you explore policies that provide meaningful support in the event of a disruption.
Ready to explore your options for Business Interruption Insurance in Texas? Contact our team today to schedule a consultation and learn how we can help protect what you’ve built—so your business can keep moving forward, no matter what comes your way.
