Business Interruption Insurance

Business interruption insurance covers the loss of income suffered by a business when damage to its premises causes a slowdown or suspension of operations during the time required to repair or replace the damaged property. This type of coverage can be added onto the business' property insurance policy or comprehensive insurance policy Since business interruption is included as part of the business' primary policy, it only pays out if the cause of the loss is covered by the overarching policy.

Business interruption risks

After all, you have built a strong and profitable business over the years and have a solid reputation with your suppliers and customers. It is not uncommon for interruptions to occur due to disasters - natural or otherwise. In today's world, there are many risks that can render a business inoperable.

Business interruption insurance evaluation

Reliance Insurance can help you complete an investigation and assessment of the vulnerable areas your commercial enterprise may be exposed to if a catastrophic or smaller localized event happened to your business. Business Interruption insurance will cover continuing expenses as well as lost profits. Through this lens we will help you identify expenses and determine adequate coverage for ongoing payables:

  • Rents or mortgage payments
  • Salaries, wages, and benefits
  • Power
  • Light, heat
  • Professional fees
  • Interest on loans to the bank
  • Taxes
  • Insurance

And evaluate lost operations and revenue streams :

  • Fulfillment of current orders
  • Brand damage
  • Loss of customers
  • Ability to rebuild or restart the business
  • Re-staffing and training

Common types of business interruption insurance

There are many different ways to cover business interruptions for small businesses. It is critical to review the business, earning, profits and the type of business in order to determine the best type of business interruption insurance. Various types may include:

  • Extra expense
  • Monthly earnings
  • Gross earnings
  • Gross profits
  • Actual loss sustained (ALS)
  • Contingent business interruption

Be prepared for an interruption of your business

Reliance Insurance will work with you to establish the proper type and limits of business interruption insurance to get you through this period of emotional and financial stress. But more importantly, we can work with you to set up a program that will help you plan in advance on how to deal with these problems so that if the unexpected happens you will have a starting point to get you on the road to recovery.

Call 604.255.4616 or request a quote for Business Interruption Insurance.

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