Why do I need…Business Interruption?


Originally established for the manufacturing industry, Business Interruption Insurance has evolved into an essential risk transfer tool for all industries. Coverage provides resources that aid in recovery and can help get a company back on its feet quickly.

When a small business owner’s restaurant was devastated by a category five hurricane, she was left with a blown-out ceiling, massive equipment damage and an un-salvageable building security system.

“The Business Interruption Insurance paid for the 23 days we were down,” Joy Hoda told the Insurance Information Institute in 2010. “Just by getting that money, it wasn’t so hard for us to make our payroll.”

It’s not to say that Joy did not sustain a loss; her Business Interruption Insurance reimbursed her for everything she would have made, minus any expenses the firm would have incurred. What the insurance allowed her to do was continue to pay her staff, meet her credit obligations and quickly reopen her business to help serve the people of her neighbourhood.

Business Interruption Insurance doesn’t just assist small businesses in meeting payroll and bills during a crisis; many small businesses never reopen following a disaster or interruption.

For larger businesses, Business Interruption Insurance can provide employees and shareholders peace of mind. Shareholders especially like to know a business’ profits are protected in case of fire, tornado, hurricane or other disaster.

Don’t wait until your business experiences a significant loss to consider this vital business insurance protection. Ask your insurance broker how this type of coverage can fit into your overall business insurance portfolio.

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