Business Interruption Insurance
3 minute read

Sudden interruptions can throw the best athletes off balance. They can also throw your small business off balance. Unexpected interruptions could force you to temporarily close up shop. A sudden storm could knock out power at your business location, or vandals could damage your storefront. Scenarios like these can be expensive and could really rough up your business, especially if you’re unable to generate a steady income to pay the bills and cover repair costs.

Great athletes can recover from unexpected disasters. Unfortunately, many businesses aren’t able to bounce back the same way; as many as 40% of businesses don’t recover after a disaster. What can you do to keep your business running when dealing with an unexpected disaster? Well, having business interruption insurance coverage can help you cover your bills and expenses when your business can’t generate income after a disaster. This can help you and your business stay in the game when unexpected interruptions occur.

What the heck is business interruption insurance?

Business interruption insurance is designed to help you recover lost business income and pay for ongoing business expenses when your business temporarily closes due to an insured loss. For example, if a fire damages your store, you’ll need make the necessary repairs. If the repairs are extensive and require you to close your business temporarily, you’ll start losing out on crucial business income.

Without your regular business income, things like bills, payroll, and other ongoing expenses will pile up like a rugby scrum until your business opens up again. Business interruption insurance can help reimburse you for any lost business profits and businesses expenses required to help you run your business until you get your business back in the game.

Business interruption insurance is designed to help you recover lost business income and ongoing business expenses while your business is temporarily closed.

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Do I even need business interruption insurance?

Here’s some real grown-up talk from TruShield’s Coverage Coach: most small businesses should consider having business interruption insurance. Unexpected losses can come in many forms, and they can disrupt your business at any given moment. For some small business owners in Hamilton, Ontario, their businesses were disrupted when vandals caused an estimated $100,000 worth of damage to their business premises. Without business interruption insurance, these business owners would have had to pay out of pocket to cover the hefty repair costs and ongoing expenses after this sudden disaster. Could your bank account handle a situation like this?

Like an injured athlete, damaged property takes time to repair. While these repairs are in progress, you still need to address ongoing business expenses. This can be stressful for a small business superstar like you, especially when your business isn’t generating income. Business interruption insurance can help alleviate that stress.

If your business income has been interrupted or drastically reduced, ongoing business expenses can pile up like a rugby scrum. Business interruption insurance can help you keep your business running.

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What kind of expenses can business interruption insurance help me cover?

If your business needs to close because of an insured loss, business interruption insurance can help you cover your ongoing business expenses. Examples of these expenses may include:

  • Rent, hydro, electricity, and other utilities
  • Payroll for your employees
  • Other expenses, such as alarm monitoring and property taxes

If the property damage to your current business location is too extensive, it might make sense to spend money and relocate your business to keep it running. Business interruption insurance may be able to help with some of these expenses as well.

Keep your business off the bench with business interruption insurance

The best coaches can’t always control what happens to their players. In the same vein, you can’t always control what happens to your business. You can, however, control how prepared you are. Having the right protection in place can make a huge difference. Make sure you have business interruption insurance: the hardhat for your small business!

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This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. Terms, conditions and exclusions apply to coverage. See policy for details.