How NB Business Interruption Insurance Could Save Your Business
Good 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
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
You need to find out and get protected now.
Pearson Insurance can help.
Do I Need Business Interruption Insurance?
If 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
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
- 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
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
As an independent broker, Pearson Insurance has the experience and
expertise to source the best coverage in New Brunswick at the most
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.