Business Interruption Insurance

Adding on to a previous blog post on business insurance that can be found here, this post will hopefully inform you of the importance of business interruption coverage. Although this coverage is sometimes overlooked, business interruption is an essential coverage for many forms of business. From individual rented condos to multi-national conglomerates business interruption insurance protects your livelihood from losses of business income as a result of a covered peril.

Normally when people think about the costs involved with a loss, what property did I lose and how am I liable are the first two things that come to mind. However, people rarely consider the amount of money and time it takes to actually restore things to how they were before. Let us say for example that you owned a restaurant and it burned down in the middle of the night. You would call your insurance company, who would then cover you for the property that was damaged because fire is an insured peril. Great, but what happens during the time it takes to remove the debris, rebuild, wait for the new equipment to come, install it, and restore your restaurant to working order? How would generate revenue? During that time, how would you pay for expenses such as rent, or wages of irreplaceable employees like your chefs who need to pay their own expenses? Perhaps even after your restaurant is back in business, it may take a while before your revenue returns to normal. Business interruption insurance attempts to indemnify you during the time that it takes to restore your business back to pre-loss conditions.

Business interruption insurance comes in different packages each with their own unique benefits but because every business operates differently, there is no cookie-cutter business interruption policy. The best way to see how you can protect your business before there is an interruption in your business is to talk to a qualified insurance broker who can assess your business operations and determine the best way to protect you. If you would like to find out more you can click here to arrange a consultation with a one of our registered brokers.