Business Insurance
Business Income Coverage
Business income coverage is the ISO policy form name for what is commonly called business interruption insurance, providing income replacement during a forced operational shutdown.
Last reviewed: May 2026 · Editorial methodology
Definition
Business income coverage is the standardized Insurance Services Office (ISO) term for the coverage most people call business interruption insurance. The ISO Business Income (and Extra Expense) Coverage Form (CP 00 30) is the standard form used by most commercial property insurers and is typically included in a BOP or commercial package policy. The form pays for actual loss of net income (profit that would have been earned) plus continuing normal operating expenses during the restoration period following a covered property loss. A manufacturing plant that loses $200,000/month in revenue after a fire can file a business income claim to recover those losses while the facility is rebuilt. Business income coverage often has a coinsurance clause requiring businesses to insure for a minimum percentage (commonly 50–80%) of the expected annual income; under-insuring can result in a coinsurance penalty applied to the claim payment. The restoration period typically ends when the damaged property is repaired or replaced with reasonable speed, not necessarily when revenue returns to pre-loss levels.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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