How NB Business Interruption Insurance Could Save Your Business

Business Interruption InsuranceGood property insurance is at the foundation of business security. But what happens if a covered disaster strikes and your income disappears? Basic commercial property insurance  coverage may pay for rebuilding or replacement of property. But, while that's happening, who's going to pay the bills and the payroll?

Your insurer will -- if you have business interruption coverage or business income insurance as it's sometimes called. It can help keep you in the same financial position you were in before disaster struck, and possibly continue paying for a period of 12 - 24 months, or even longer.

Basics of Business Interruption Insurance

Business interruption insurance covers keeping your business afloat at the same level of income and profitability it was experiencing before your loss.

It's usually an endorsement to your existing property insurance -- because it's the perils outlined in that policy that affect your entitlement to loss of income compensation.

Sometimes, business disruption coverage may be automatically included in property policies, however that is not always the case as it is optional coverage.

You need to find out and get protected now.

Pearson Insurance can help.

Do I Need Business Interruption Insurance?

business interruption insuranceIf you're in business, you almost certainly do need it because lack of coverage could threaten the survivability of your business.

If you have employees and financial commitments to others, such as suppliers, you need this protection even more, unless you have massive financial reserves. Even then, your reserves could be drained by a prolonged shutdown.

Pearson's experienced business insurance experts are here to help you. We can review your existing commercial property insurance, answer your questions, and review your coverage needs, all without cost or commitment.

What is Covered by Business Interruption Insurance?

Policies can be quite wide-ranging depending on your needs, which is why you need the help of Pearson Insurance. Coverage typically might include:

  • Loss of income or profits arising from closure or disruption of your business activities due to an insured peril. That could be anything from destruction of your building to loss of equipment or computers.
  • Losses arising from inability to access your premises due to a ban imposed by local or provincial authorities after an adjoining or nearby building is damaged.
  • Fixed costs and operating expenses that still have to be paid during the interruption.
  • Other business expenses that may be incurred as a result of the disruption, such as outsourcing of work.
  • The cost of relocating to alternative or temporary premises while repair, replacement and restoration take place.
  • Losses caused when a disaster affects a supplier's or customer's premises. This is called contingent business interruption insurance and usually is not included in a standard policy. It's available as an option.

Business Interruption Insurance: How Does It Work?

Business interruption insurance can be arranged either for named perils or for all-risks (as with property insurance itself).

Coverage kicks in from the moment the disruption occurs and lasts until things return to normal. Usually, policies cover periods of 12 or 24 months.

There are two types of policies. With the first form, the payments stop once your business is up and running again. A second, preferred option, offers extended coverage, protects you until your income and profitability return to their pre-disaster levels.

Don’t wait…. You Should Be Planning Now

Business interruption insurance is an essential element of your business continuity.

As an independent broker, Pearson Insurance has the experience and expertise to source the best coverage in New Brunswick at the most competitive prices.

Find out now exactly what it would entail for your business and how much it would cost. It's free and there's no commitment.