You’ve worked hard to build your business. But a disaster could close your doors in an instant. Are you prepared and protected if you have to shut down your business temporarily if a disaster strikes?
Flooding, weather damage, fires, power outages and even vandalism could force you to close. All of which could cause you to lose out on sales and revenue. Can you survive an interruption in business? Most businesses can’t.
It’s estimated that 40% of businesses don’t recover after a disaster. 25% fail in the first year after a disaster.
Business interruption (BI) insurance helps you cover loss of business income. It helps you get back to business as usual when a disaster strikes.
Business interruption insurance has flexible coverage solutions. Choose the coverage that makes the most sense for your business. Coverage options include :
Adding another layer of protection for your business is easier than you think. Tell us about your business and coverage needs. Our business insurance experts will find you the best business interruption policy for your business type.
Provide some details about your business and income needs. We'll help you with any questions you have.
We’ll compare quotes from the top commercial insurance providers. You'll save on the coverage your business needs.
Choose the best premium for the policy and coverage you want. Then purchase your policy!
Business interruption coverage costs vary based on the size and type of business, coverage limits, and other factors. This includes :
Speak with our insurance experts today to compare business interruption quotes. We’ll help you find a custom policy to meet your unique business needs and fit your budget.
Business interruption insurance covers your business against loss of income you may suffer. Coverage kicks in if your business has to close after a disaster event.
Business interruption insurance is also referred to as loss of business income insurance. The coverage helps you recover lost business income and cover business expenses.
You will receive compensation to provide you with the revenue you would have received if your business was running as normal. You’ll also have coverage for normal day to day operating expenses.
Businesses can add this coverage to an existing policy or as an add-on. It may be part of a comprehensive commercial policy.
Without business interruption insurance, you will lose revenue for every day you are not operating. After a disaster, it could take weeks or months to repair your property and restore it. Every day your business is not open results in more lost revenue.
Plus, you still need to pay the bills, your employees, and account for other business expenses. So, does your business need this type of coverage? Yes, the majority of businesses can benefit from business interruption coverage.
All businesses can benefit from business interruption coverage, especially new companies, start-ups and small businesses. Smaller companies are less equipped and are not financially stable enough to withstand a disaster causing a sudden closure.
Small businesses typically have a more difficult time recovering after a disaster or loss event. They are more likely to close after a loss if they don’t have business interruption insurance.
Any business with a physical location could have an interruption. Business interruption helps to protect your business against loss events such as floods, windstorms, earthquakes, fire, and other perils.
Your business can also get protection from other unexpected events that hurt your ability to do business. Examples include :
A local bakery has a fire in the kitchen. The business needs to shut down for 2 months to repair the fire damage. The business has business interruption coverage. The policy covers the costs of employee salaries, business rent, utilities, and other fixed operating costs. The bakery will also get compensation for the income they would have generated during this time.
Without business interruption insurance, the bakery would have to absorb these costs. They would carry the costs of employee salaries and fixed costs while suffering from loss of revenue.
There are four main financial areas where business interruption helps :
Extra expense coverage is available to expand the reach of business interruption coverage. This extra coverage will provide you with additional resource to help you continue business operations during repairs.
The duration of business interruption coverage depends on your insurer and policy. Each policy will outline a maximum period of time it will pay for business operating expenses after a disaster or loss event.
Business interruption coverage comes into effect when you have to close your doors. Contact your business insurance expert to open a claim. Once you open a claim, you will get a reimbursement for operating expenses and lost income. You will need to show proof of revenue and expenses.
You will be subject to coverage limits and time limits as outlined in your policy. Payments will stop once you are back up and running or once you meet your coverage limits. Be sure to understand the extent of your coverage.
At ThinkInsure, we understand that every business has unique needs. One thing you all have in common is the need for business insurance. You need coverage in place to protect you when you need it most. Even when forced to close for unforeseen circumstances.
Find out why so many businesses in Toronto and Ontario choose us :
You can’t always control what can happen to your business. You can prepare for disasters and other loss events that could impact your ability to operate. Taking precautionary steps now can help you quick recover from a disaster.
Check out these additional questions about business interruption insurance coverage in Ontario :
Yes. All businesses can add business interruption coverage to their current business insurance policy.
All types and sizes of companies in all industries can benefit from business interruption insurance. Custom coverage is available to meet your specific insurance needs.
It depends on your policy. Some policies include a deductible. The amount will vary depending on your insurer and other factors.
Business income insurance is another term used to describe business interruption insurance coverage.
Yes. You can choose a policy to include payroll coverage.
Business income insurance covers the cost associated with fixed costs. Extra expense insurance is additional coverage that covers business interruption expenses that go beyond a standard business interruption policy.
This type of business interruption insurance pays out until your property is fully repaired or restored.
Most policies have a 72 hour waiting period for business interruption coverage to kick in. You will not be able to start recovering lost income until after a business meet the 72 hour closure threshold.