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.

Where this term matters

Business Insurance →/business/bop →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Business Interruption InsuranceBusiness interruption insurance keeps a business financially afloat during the period it cannot operate due to a covered physical loss such as fire, windstorm, or burst pipes.Extra Expense CoverageExtra expense coverage compensates businesses for the additional costs — temporary space rental, expedited shipping, overtime labor — needed to keep operating during recovery from a covered property loss.Commercial Package Policy (CPP)A Commercial Package Policy (CPP) offers mid-sized and larger businesses a flexible framework to bundle multiple coverage lines into one policy, providing broader customization than a standard BOP.Business Owner's Policy (BOP)A BOP packages general liability and commercial property insurance into one affordable policy, designed specifically for small to mid-sized businesses.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
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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 June 2026

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