How business interruption insurance can help protect you

2 minute read  

Sudden interruptions can 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.

Unfortunately, many businesses have a hard time bouncing back. What can you do to keep your business running when dealing with an unexpected disaster? Having business interruption insurance coverage can help you cover your bills and expenses when your business can’t generate income after a disaster, which in turn, can help you and your business stay in the game when unexpected interruptions occur.

What is business interruption insurance?

Business interruption insurance is designed specifically to help you recover lost income and pay for ongoing expenses when your business temporarily closes due to an insured loss. For example, if a fire damages your store, you’ll need to 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 may pile up 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 are ready to open again.

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

Why do I need business interruption insurance?

Every small business owner should consider having business interruption insurance, as unexpected losses can come in many forms, and they can disrupt your business at any given moment. 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 owner like yourself, 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. Business interruption insurance can help you keep your business running.

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 safe with business interruption insurance

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.

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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.