What Is Business Interruption?
Business interruption coverage replaces lost income and pays ongoing expenses when a covered event, like a fire, forces your business to close or scale back. It helps cover payroll, rent, and lost profits during the time it takes to return to normal operations.
Business interruption is usually added to a commercial property policy and responds only when there is covered physical damage. Getting the indemnity period and income limit right matters: your broker can size it to how your business actually operates.
Frequently asked questions
What does business interruption insurance cover?
Business interruption insurance covers the income you lose and the ongoing expenses you still have to pay when a covered loss, such as a fire, forces your business to close or slow down. It can include payroll, rent, loan payments, and lost profit until operations are restored.
Does business interruption cover a closure without property damage?
Generally no. Business interruption usually responds only when the shutdown is caused by covered physical damage to your property, so a closure without that damage is typically not covered unless the policy has a specific extension.
How much business interruption coverage do I need?
Base it on how long it would realistically take to rebuild and reopen, and on the income and fixed costs you would need to cover during that time. Your broker can help you set the indemnity period and income limit from your financial statements.
Questions about Business Interruption?
Our Ontario brokers can explain how it applies to your policy.
Talk to a Roughley broker