When Insurance Coverage Fails to Prevent Business Interruption Losses

Insurance can reduce the financial consequences of a qualifying event, but it does not guarantee uninterrupted operations or complete commercial recovery. Business interruption can continue affecting revenue, liquidity, customer relationships, supply chains, and financing even after physical damage is repaired.

This analysis examines the distinction between insured loss and economic loss, including coverage triggers, indemnity periods, retained exposure, claims timing, supply-chain dependencies, and the financial consequences that may remain with the business after insurance compensation.