Rhode Island Insurance Adjuster Exam 2026 – Complete Study Guide

A business interruption claim is typically triggered when an unforeseen event disrupts the normal operations of a business and results in financial losses. Natural disasters are a classic example of such events, as they can lead to property damage, loss of inventory, and operational halting, all of which directly impact a business's ability to generate revenue.

When a natural disaster strikes, it may cause physical damage to the premises or significant disturbances that prevent the business from operating as usual. Insurance policies designed for business interruption cover the loss of income that a business suffers due to these interruptions, as well as any necessary ongoing expenses that need to be paid during the recovery period.

Thus, natural disasters affecting business operations serve as the most clear and direct cause for initiating a business interruption claim, aligning with the purpose of such insurance coverage.