When a fire impacts a business, the physical damage is often just the beginning. The real challenge comes in the days and weeks that follow—when doors are closed, operations are halted, and your team is left wondering what’s next.
At Lathrop Insurance, we’ve seen the impact these events have on local businesses, and we’re here to help you plan for what happens after the fire is out. One of the most powerful tools to protect your business and your people is Business Interruption Insurance.
What Is Business Interruption Insurance?
Business Interruption Insurance—also called Business Income Coverage—is a vital part of a property or Businessowners Policy (BOP). It’s designed to reimburse lost income and ongoing expenses when a covered peril, like a fire, temporarily shuts down your operations.
But here’s what many business owners don’t realize: in some cases, it can also cover your payroll.
Why Payroll Coverage Matters
Your employees are your business. After a devastating event like a fire, you may not be able to reopen for weeks or even months. Without revenue coming in, how do you keep paying your team?
With the right Business Interruption coverage, you don’t have to choose between staying afloat and supporting your employees. This policy can help cover:
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Wages for key staff you need to retain during the shutdown
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Salaries of full-time employees to avoid turnover or rehiring costs later
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Payroll for specialized workers who would be hard to replace
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Benefits and payroll taxes that continue while your business recovers
It’s about stability—for your people and your business. Keeping your team intact during the disruption ensures that when you’re ready to reopen, you’re not starting from scratch.
Real Life, Real Coverage
One of our clients, a successful Rhode Island catering company, suffered a devastating fire that shut down their commercial kitchen. Events were booked, clients were counting on them, and their staff relied on regular hours. Without access to their kitchen, their business—and their reputation—were at risk.
But because they had robust Business Interruption and Extra Expense coverage through Lathrop Insurance, we helped them:
· Secure and outfit a temporary kitchen space
· Continue operating at a reduced capacity without cancelling contracts
· Retain their full-time staff with uninterrupted payroll
· Cover the additional rent and utilities at the temporary location
For nearly four months, they operated seamlessly out of their alternative space while the original kitchen was rebuilt. There were limited layoffs and client interruptions. And when they returned to their home base, the business was still strong—and so was the team that kept it going.
Planning Ahead
Not all Business Interruption policies automatically include payroll coverage—or they may only include it for a limited time. It’s critical to review the limits, waiting periods, and exclusions to make sure your coverage fits your real-world needs.
We help our clients look beyond replacement costs and focus on what truly keeps a business alive: its people, its revenue, and its resilience.
Ask Yourself:
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Could you afford to pay your team if your business shut down for 60 days?
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What key employees would you risk losing without payroll coverage?
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Does your current policy include Business Interruption coverage with payroll?
Let’s Talk About Protection That Lasts
Insurance shouldn’t just repair your building—it should help you rebuild your business. If you’d like to review your current coverage or explore how Business Interruption insurance can support your payroll and people after a loss, give us a call. Lathrop Insurance is here to protect what you’ve built—and who you’ve built it with.
