Business Interruption Insurance

Do you own a store, restaurant or business that would be impacted if you can’t be open? You need Business Interruption Insurance that compensates you for your lost income while your business is closed due to an insured direct physical loss. You can add Business Interruption coverage to your commercial property insurance policy.

It’s always better to be prepared. Business Interruption Insurance is one of those things that you don’t know you need until you need it. Your business can be disrupted for any number of reasons, such as natural disasters, equipment breakdown, local civil unrest, vandalism, loss of key personnel or a cyber breach — all of these could be covered by a policy that replaces your loss of income or profits until you’re back up and running again. Business Interruption coverage can also assist in meeting payroll and bills during a crisis and provide employees and shareholders peace of mind.

Typically, Business Interruption Insurance coverages would include:

Extra Expense Coverage:

This form of coverage insurers against payment of additional expenses while operating in temporary quarters due to damage to buildings or contents by an insured peril.

Gross Earnings Coverage:

A form of insurance which covers the reduction of gross earnings (total net sales less the cost of goods sold) during the period that a business is shut down following damage by an insured peril. Coverage however, only applies until the doors open again for business.

Profits Coverage:

This form of coverage continues until the organization profits have returned to the same position as they were prior to the loss occurring subject to an indemnity period which is usually 12 months.

Rental Income Coverage for Landlords:

A form of business interruption insurance designed for landlords to cover the loss of rents when leased property is made untenantable due to damage by an insured peril, subject to the indemnity period on the policy.