Tax Interruption

Overview of the Program from AI Risk:

AI Risk offers a focused Tax Interruption insurance program tailored to small municipalities. The coverage protects municipal tax revenue—sales and/or property tax—when a scheduled premises suffers direct physical loss or damage that interrupts the tax-generating activity. This program is structured to help public entities preserve budget stability while recovery and rebuilding take place.

Ideal Accounts and Appetite:

This program is designed for municipalities with populations of 50,000 or fewer. You can use it for small cities, towns, and local government entities that depend on tax revenue from defined physical locations such as business districts, downtown corridors, or shopping centers. Typical fit examples include:

A rural town that relies on property taxes from a commercial corridor that is partially or fully closed after a storm
A small city where a central retail zone generates a meaningful share of sales tax and is damaged by fire or flood

Coverage Highlights and Advantages:

AI Risk’s Tax Interruption policy covers loss of tax income resulting from covered direct physical damage to scheduled premises. Key advantages include:

Protection for lost sales and/or property tax revenue tied to specific, scheduled locations
Underwriting and placement access through AI Risk with capacity provided by AIG
A program tailored for public-sector budgeting and continuity planning

Underwriting Notes and Minimum Premiums:

Policies require clearly scheduled premises and documentation of the tax revenue dependencies for the municipality. The minimum premium for this program is $5,000. As an MGA and carrier, AI Risk applies public-sector underwriting experience to evaluate exposure concentration, dependency on single locations, and the municipality’s recovery plans.

Territories and Availability:

This Tax Interruption program is available on an admitted basis in all 50 states and Washington, D.C. Whether your client is in the Southeast, Midwest, West Coast, or elsewhere, you can consider this coverage for qualifying municipal accounts.

Why Work With AI Risk on Tax Interruption:

AI Risk combines MGA underwriting expertise with access to AIG’s global capacity, delivering a market focused on niche public-sector interruptions. Agents and brokers benefit from specialized underwriting, a clear appetite for small municipalities, and solutions aimed at preserving municipal revenue streams after physical damage.

You can learn more on AI Risk’s CompleteMarkets profile: visit their company profile.

Frequently Asked Questions

What types of accounts are a good fit for this program?

This program is ideal for municipalities with populations of 50,000 or fewer that rely on property or sales tax revenue from specific physical locations.

What does the Tax Interruption policy cover?

The policy covers loss of tax revenue (sales and/or property) resulting from direct physical loss or damage to scheduled premises.

Is this program available in all states?

Yes, the Tax Interruption program is available on an admitted basis in all 50 states and Washington, D.C.

What is the minimum premium for this coverage?

The minimum premium for this program is $5,000.

Who underwrites this program?

This program is underwritten by AI Risk in partnership with AIG.

Need help placing an account? Connect with a market specialist.

U.S. States Available

U.S. States Available:

Provider Type:

Managing General Agency and Carrier

Admitted:

All Available States

Carriers:

Carrier Ratings:

A.M. Best A XI rated

Commission:

Varies

Min Premium:

-

Coverages:

Tax Interruption Insurance

CompleteMarkets is The Insurance Industry's Professional Network

Please Register for FREE or Sign In to contact

Not an Insurance Agent? No problem, we help hundreds of people find the right agent/advisor every day!

Visit our dedicated Insurance Consumer section and we will recommend the right agent for your specific needs.

AI Risk has other insurance programs like Amateur Sports.

AI Risk