Why Business Interruption Insurance Matters for Your Business
Running a business comes with its fair share of challenges, and unexpected interruptions can pose serious financial threats. According to Canadian Underwriter, "business interruption, including supply chain disruption, is this year’s number one risk for Canadian companies [...] Companies most fear business interruptions driven by cyber incidents and natural catastrophes, followed by fire, machinery breakdown and supplier failure".
That’s where business interruption insurance comes in — offering a crucial safety net to help your business stay resilient through the unexpected. Learn how it can help protect your company against setbacks, ensuring continuity and long-term success.
What Is Business Interruption Insurance?
Business interruption insurance helps protect your income if your operations are temporarily halted due to a covered event. While property insurance covers the cost of physical damage, business interruption insurance goes a step further — covering the lost income and extra expenses you may incur while getting your business back up and running.
There are two common types of business interruption coverage:
Earnings Coverage: Reimburses the income your business would have earned during the downtime, based on historical financial data.
Profits Coverage: Covers the profit your business would have made had the interruption not occurred, helping you maintain expected revenue.
How Business Interruption Insurance Can Help
Interruptions can strike from many directions, and without the right coverage, even a short closure could have long-term financial impacts. Business interruption insurance can be especially valuable in situations such as:
Severe Weather or Natural Disasters: Storms, floods, or extreme weather events that force you to shut down temporarily.
Fire Damage: Losses due to fires that damage your building, inventory, or equipment.
Supply Chain Issues: Delays or shortages from key suppliers that halt your ability to deliver products or services.
Utility Outages: Long-term power or water supply failures make operating your business impossible.
How to Make Sure You’re Properly Covered
Not all business interruption policies are created equal. To ensure your business has the protection it needs, consider the following:
Evaluate Your Risks: Understand your business's specific threats based on your industry, location, and operations.
Know Your Numbers: Review your income statements to determine appropriate coverage.
Add Extra Expense Coverage: This can help with costs like leasing temporary office space or fast-tracking repairs to minimize downtime.
Understand Your Policy: Be clear on the waiting period before coverage kicks in, what’s excluded, and how long your coverage lasts.
Talk to a Broker: Working with a trusted insurance broker — like our team at dbi Brokers Ltd. — ensures your coverage is tailored to your unique business needs.
Let’s Safeguard Your Business Together
Unplanned closures can happen in an instant. Without proper coverage, the financial toll can be devastating. Business interruption insurance offers peace of mind, allowing you to focus on rebuilding and recovery — not revenue loss.
At dbi Brokers Ltd., we’ve been helping Ontario businesses protect what matters most for over 90 years. Let’s work together to ensure your business is ready for whatever comes next.
Contact us today at 1-800-268-3311 or ebrokers@dbibrokers.ca to learn more about this type of insurance coverage or get a free quote. You can also visit our Business Insurance page for more details.
