Owning and operating a business is a lot of work. You funnel most of your time and energy into making sure everything runs smoothly (and profitably). No matter how much time or work you put into your business, you can’t control or predict every situation. Thankfully, there’s insurance for that!
Insurance often covers incidents like unexpected illness or injury, a car accident, or even death. You’ve protected yourself and your family from the worst-case scenario, so why not protect your business from the unexpected too?
No business owner wants to consider what might happen in the case of a disaster, but they can and do happen. In Alberta, wildfires and floods often cause businesses to have to shut down unexpectedly. From natural disasters to human resources issues, you never know what’s going to happen in your business to prevent it from running smoothly. The best way to protect against that is through business interruption insurance through Cornerstone Insurance.
WHAT IS BUSINESS INTERRUPTION INSURANCE?
During an unexpected shutdown, your business won’t have any income. Not only will revenues suffer, but you may be forced to close down as a result. Business interruption insurance covers your business’ lost income after an unexpected interruption.
Your policy will typically help cover your operating expenses until you get back to business as usual.Some of the situations where you may need business interruption insurance include:
- Break-ins
- Theft
- Vandalism
- Fires
- Flood
- Natural Disasters
WHO NEEDS BUSINESS INTERRUPTION INSURANCE?
The short answer is that every business should have some level of business interruption insurance.
Although the risk is greater for some businesses, any business could face an unexpected interruption or loss at any time. The property damage, replacement costs, extra expenses, and lost income can end up costing your business thousands of dollars. As a result, most businesses need some sort of business interruption coverage to help support their business in case of an unexpected shutdown.
A Little Additional Coverage
If your business relies on the continued operations of another business, you may require additional coverage. This is known as contingent business interruption insurance.
Contingent business interruption insurance is an extension of your business interruption insurance. If, for example, you rely on an external manufacturer, your operations could be affected by a shutdown in their business. The additional coverage will help cover your costs in case the other company experiences an interruption that affects your business’ normal operations.
What Does Your Coverage Include?
Your business interruption policy will help cover most of the short-term and long-term costs your business faces until you have resumed normal operations. Some of the costs your policy may cover include:
- Lost Profits. The amount you receive for lost profit will most likely be determined based on your previous income.
- Fixed Costs. Your business has certain operating costs that continue even during a disaster. These are typically covered.
- Extra Expenses. Most policies will provide coverage for reasonable expenses you incur to allow your business to continue operating during the disaster.
- Wages. Your employees are essential for you to resume your normal operations, which is why most policies will help you pay their wages in the meantime.
- Taxes. You’re always required to pay taxes and your policy should help cover them.
In essence, your business interruption policy will help cover your normal operating expenses until your operations have returned to normal.
OTHER COVERAGE TO CONSIDER
Your business requires more than just business interruption insurance; it needs reliable protection in a range of situations. If you’re new to business or you’re looking for some additional coverage, here are some of the policies most insurance companies recommend for small businesses:
- Commercial General Liability Insurance
- Professional Liability Insurance
- Commercial Property Insurance
- Loss of Income Insurance
- Income Protection Insurance
- Cyber Liability Insurance
Are you ready to find a policy that protects your business? We’re ready to help. Get in touch with the professionals at Cornerstone Insurance so we can find the right policy to protect your business and keep you running for decades to come.
