Business Interruption Insurance for Myrtle Beach Businesses

What Is Business Interruption Insurance?

Business interruption insurance replaces lost income when a covered disaster forces your business to temporarily close. Also called business income coverage, this protection kicks in after events like fires, storms, or other covered property losses that prevent you from operating. While your commercial property policy covers the physical damage, business interruption insurance covers the financial damage—the revenue you lose while repairs are underway.

For Myrtle Beach businesses, this coverage is particularly relevant. Hurricanes, tropical storms, and severe weather can shut down operations for days or weeks. A kitchen fire can close a restaurant for months. Business interruption insurance keeps money flowing so you can pay rent, meet payroll, and cover loan payments even when customers can't walk through your door.

Why Myrtle Beach Businesses Need Business Interruption Insurance

Most businesses operate on thin margins with little cash reserve. When disaster strikes, the financial pressure starts immediately:

• Fixed expenses don't stop. Your lease payment, equipment loans, insurance premiums, and utilities come due whether you're open or not. Business interruption coverage helps you meet these obligations during a shutdown.


• Payroll continues. Losing key employees during a closure can cripple your recovery. Business interruption insurance lets you keep staff on payroll so they're ready when you reopen.


• Recovery takes longer than expected. What looks like a two-week repair often stretches to two months. Permit delays, contractor availability, and supply chain issues extend timelines—and your losses.


• Property insurance won't cover lost profits. Your commercial property policy pays to repair or replace damaged buildings and equipment. It doesn't replace the income you would have earned during repairs.


• Coastal exposure increases risk. Myrtle Beach businesses face hurricane and tropical storm threats that can force extended closures, making income protection essential.

What Does Business Interruption Insurance Cover?

Business interruption insurance reimburses the income your business would have earned during a covered closure. Coverage typically includes:

Lost net income. The core benefit replaces profits you would have earned based on your historical financial records. Insurers look at past revenue, seasonal patterns, and growth trends to calculate what you would have made during the period of restoration.

Continuing operating expenses. Rent or mortgage payments, loan obligations, taxes, and other fixed costs that continue during a shutdown are covered. These expenses don't disappear when your doors close.

Payroll expenses. Keeping employees on staff during a closure protects your workforce and speeds recovery. Business interruption coverage can include ordinary payroll for all employees or just key personnel, depending on how the policy is structured.

Relocation costs. If you need to operate from a temporary location while your Myrtle Beach property is being repaired, business interruption insurance can cover the additional rent and moving expenses.

Extra expense coverage. Sometimes spending money saves money. Extra expense coverage pays for costs that help you stay open or reopen faster—renting temporary equipment, expediting repairs, or advertising your new temporary location. This coverage can be included in your business interruption policy or added as a separate endorsement.

Civil Authority Coverage

What happens when your building is fine, but the government orders you to close? Civil authority coverage extends business interruption protection to situations where authorities prohibit access to your property due to damage in the surrounding area. For South Carolina businesses, this matters after major storms when evacuation orders or road closures prevent normal operations.

Contingent Business Interruption

Your business depends on suppliers and customers. Contingent business interruption coverage protects against losses when a key supplier can't deliver materials or an important customer's location is damaged. If the seafood distributor supplying your Myrtle Beach restaurant suffers a fire, contingent coverage helps replace your lost income even though your property wasn't damaged.

How Does Business Interruption Insurance Work?

Business interruption coverage is triggered by direct physical loss to your property from a covered peril. Here's the sequence:

A covered event damages your property. Fire, wind, hail, lightning, or another covered peril causes physical damage that prevents normal business operations.

The waiting period begins. Most policies include a waiting period—typically 48 to 72 hours—before coverage kicks in. This works like a deductible measured in time rather than dollars.

The period of restoration starts. Coverage runs from the end of the waiting period until your property is repaired and you can resume operations, or until your policy limit is reached. This period of restoration is when business interruption benefits are paid.

Extended business interruption applies. Even after repairs are complete, it takes time to rebuild customer traffic. Extended business interruption coverage continues payments for a specified period after you reopen, recognizing that revenue doesn't instantly return to normal.

What Business Interruption Insurance Does Not Cover

Understanding exclusions prevents surprises during a claim:

• Flood and earthquake damage. Standard business interruption policies exclude these perils. Separate flood insurance with business income coverage is available and worth considering for Myrtle Beach businesses in flood-prone areas.


• Utility outages. Power failures or utility interruptions typically aren't covered unless they result from physical damage to your property. Utility services interruption coverage can be added if this exposure concerns you.


• Pandemic or virus closures. Most policies require direct physical damage to trigger coverage. Government-mandated closures due to public health emergencies generally don't qualify.


• Undocumented income. Insurers base payments on your financial records. Poor bookkeeping or unreported income reduces your recovery.

How Much Does Business Interruption Insurance Cost in South Carolina?

Business interruption insurance is typically added to your commercial property policy rather than purchased separately. The premium depends on several factors:

• Your revenue and expenses. Higher income businesses need more coverage, which costs more to insure.


• Industry and operations. Restaurants, manufacturers, and businesses with complex operations face different risk profiles than professional offices.


• Location. Coastal Myrtle Beach properties may see different rates than businesses in Conway or Georgetown due to storm exposure.


• Coverage limits and waiting period. Higher limits and shorter waiting periods increase premium costs.


• Building construction and protection. The same factors affecting your property insurance—construction type, fire protection, security—influence business interruption rates.

Many South Carolina business owners find that business interruption coverage adds 10% to 20% to their commercial property premium. For the protection it provides, this is often the most valuable coverage on the policy.

Calculating Business Interruption Coverage Limits

Choosing the right coverage limit requires projecting how long a major loss might shut you down and what income you'd lose during that period. Consider:

Maximum restoration period. How long would it take to repair or rebuild after a major fire or storm? In Myrtle Beach, contractor availability and permit timelines can extend repairs significantly.

Annual revenue and expenses. Your coverage limit should reflect your actual financial exposure. Underinsuring leaves you covering losses out of pocket.

Seasonal fluctuations. Grand Strand businesses often earn a disproportionate share of annual revenue during summer months. A closure during peak season costs more than a winter shutdown. Make sure your coverage accounts for this.

Moore & Associates can help you analyze your financial records and estimate appropriate coverage limits based on realistic restoration timelines for your type of business.

Why Work with Moore & Associates for Business Interruption Insurance

Moore & Associates has helped Myrtle Beach businesses protect their income since 1979. As an independent insurance agency, we work with multiple carriers to find competitive business interruption coverage tailored to your operations and risk profile.

Our local agents understand the specific challenges facing South Carolina businesses—hurricane exposure, seasonal revenue patterns, and the economic realities of operating along the Grand Strand. We help structure coverage that actually protects your income, with appropriate limits, reasonable waiting periods, and endorsements that address your specific vulnerabilities.

Whether you run a restaurant in Surfside Beach, a retail shop in North Myrtle Beach, or a professional office in Murrells Inlet, we can build a business interruption program that keeps you financially stable when disaster strikes.

Get a Business Interruption Insurance Quote in Myrtle Beach, South Carolina

Our business interruption insurance agents serve Myrtle Beach, South Carolina and surrounding areas including North Myrtle Beach, Atlantic Beach, Conway, Surfside Beach, Murrells Inlet, Litchfield, Pawleys Island, and Georgetown. Contact Moore & Associates today for a free quote.