Business Interruption Insurance
A natural disaster like a tornado or a fire can strike your business at any time, possibly resulting in a forced shutdown and an interruption of your normal business process. Such an event can lead to direct losses and indirect losses. Although your business's property and casualty insurance will likely cover your direct losses (e.g., any property that's been damaged, the expense of rebuilding your business facility), it probably won't cover any indirect losses. Indirect losses include ongoing business expenses and extraordinary expenses, like rent for a temporary location, that your business wouldn't have incurred if the perilous event hadn't happened.
Business interruption insurance is designed to cover your indirect losses in the event that a catastrophe prevents you from doing business. Though most lenders don't require such insurance, it can help restore your business to the same position it was in before the catastrophic event by covering the extraordinary expenses and loss of income.