Why do I need business interruption insurance?
You’ve worked hard to establish your business and develop a loyal client base. What would happen if you couldn’t open your doors because of a fire or other event? Each day your business remains closed is another day of lost revenue. Business interruption, more commonly referred to as loss of income insurance, will help you get back in business.
Loss of income insurance protects your business if you have a loss or damage described in your insurance policy. It covers your lost income and day-to-day operating expenses, and you can even add optional coverage to ensure payroll will be met for a given time period.
How big does my business need to be?
Small businesses have a harder time recovering after a loss, and they’re more likely to close after a loss has occurred without this kind of support.
How long does it cover me for?
Each policy has a maximum period that it will pay for business operating expenses. Talk to your Financial Advisor for more details.
Does it cover other expenses?
If you want to go over and above operating costs, you can with extra expense insurance, which can cover things like outsourcing work or a temporary move to another location.
Preventing business interruption
Of course, prevention is always the first line of defence. The Institute for Catastrophic Loss Reduction (ICLR) has developed Open for Business, a program to help small to mid-sized business owners plan for and recover from major losses.
Ask your Financial Advisor for a complete analysis of your business risk. We can provide recommendations that will help reduce or eliminate a potential risk.