Business Interruption Insurance
Business interruption (business income) insurance replaces the revenue you lose when a covered event shuts your theater down. For a business with high fixed costs and blockbuster-dependent revenue, it can be the difference between reopening and closing for good.
Business Interruption Insurance for Cinemas
A movie theater carries heavy fixed costs — rent or mortgage, staff, utilities, and film licensing — that don't stop when the doors close. If a fire, burst pipe, or extended power outage forces you to shut down, business interruption insurance replaces the income you would have earned and helps you keep paying the bills.
What's Covered
- Lost net income: The profit you would have earned during the shutdown period
- Continuing expenses: Rent, loan payments, payroll, and utilities that continue while you're closed
- Extra expense: The added cost of temporary repairs or equipment rental to reopen faster
- Civil authority: Lost income when authorities block access to your theater after a nearby covered event
- Restoration period: Coverage through the time it reasonably takes to repair and reopen
Why Theaters Are Uniquely Exposed
Cinema revenue is concentrated and time-sensitive. Miss a major holiday weekend or a tentpole blockbuster release because of a closure, and that revenue is gone forever — you can't make it up later. Seasonal swings and thin margins mean even a few weeks dark can be catastrophic. Business interruption is what bridges that gap.
Setting the Right Indemnity Period
The most common mistake is choosing too short a restoration period. Rebuilding an auditorium, replacing custom seating, or sourcing a new projector can take months. We help you set an indemnity period that reflects how long it would realistically take to get every screen running again.
What's Covered
Frequently Asked Questions
Business interruption pays when a covered physical loss — such as fire, water damage, or equipment breakdown — forces your theater to suspend operations. The underlying cause must be a peril covered by your property or equipment breakdown policy.
Enough to replace your net income plus continuing expenses for the full time it would take to rebuild and reopen — often 6 to 12 months for a theater. We calculate this from your financials so you're neither under- nor over-insured.