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Understanding Business Interruption Insurance Before You Regret It

Posted Aug 16th, 2019 in Media, General, Insurance Tips, Commercial Insurance, Did You Know?, In the News

Continuity is critical in business, and there are few things more important than constant revenue and cash flow, making business interruption insurance invaluable.

Understanding Business Interruption Insurance, Youngs Insurance, Ontario

For small to medium-sized businesses, just one brief business interruption can be incredibly costly; often leading to serious reputational damages and long-term closures. There is insurance available to protect you against this!

What’s Business Interruption Insurance?

Business Interruption insurance provides protection against a variety of common interruptions, including fire, natural disasters, equipment damage, and vandalism. This coverage protects you when losses associated with being temporarily unable to operate occur and cause your business to temporarily close. The business interruption portion of the insurance policy can be applied to help cover the net income loss.

5 Benefits of Business Interruption Insurance

#1 Revenue

In the event of a revenue disruption, business interruption insurance provides coverage for business income you would have earned during a period of forced closure if it had been operating normally.

#2 Rent or Lease Payments

Even if the premises are left unusable after a disaster, many leases still require you to keep up with payments. Business interruption insurance allows you to continue making those payments, even while your business is unable to operate.   

#3 Relocation

If your primary location is unusable following an unforeseeable event, business interruption insurance will cover the costs involved in relocating your business, while remaining open so you can continue to generate revenue. 

#4 Employee Wages

If you are unable to operate, it is likely you will not be able to continue paying employees. Business interruption insurance can help you avoid losing staff while you’re temporarily closed by ensuring that you have funds available for payroll.

#5 Loan Payments

If you have an outstanding loan, you will need to continue to make payments even if your business isn’t fully operational. Business interruption insurance will ensure you never miss a payment.

    Business interruption insurance is unique to each individual business. Contact your broker today to learn more about business interruption insurance and how it can benefit you!

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