While property insurance can cover the expense of repairing or replacing your facility, equipment, or supplies, how will you keep your business running in the meantime? Some damaged products can be replaced, but you won’t be able to restore your lost revenue unless you have the correct insurance coverage.

Business interruption insurance enables you to get your company back up and running as quickly as possible. Read along to know more about why your business needs business interruption insurance.

What is business interruption insurance?
A business interruption insurance covers damages in net income caused to your business by a covered loss. Say, your business property catches fire. Consequently, all the factory equipment, tools and property burn down. Property damage will cover the losses of the damaged property, equipment etc. But what about the losses incurred in allowance due to the destruction of the property?

A business interruption insurance will cover such damages so that your business remains up and running. Nobody can foresee an accident. Nor is it possible to prevent accidents that are naturally caused. But, as a business owner, you can prepare yourself for the worst by getting insured against such accidents. While your business is temporarily closed, you can recover lost business income and ongoing expenses.

It is important to note that you cannot buy this as a stand-alone policy. It’s usually included in your business property insurance policy, but it can also be added as a rider to an existing policy. This policy only pays out if the underlying casualty policy covers the cause of the company’s income loss. The amount due is usually determined by the company’s prior financial records.

What Does Business Interruption Insurance Cover?
Business interruption coverage varies depending on the insurance company however, it usually includes compensation for the following:

● Mortgage and lease payments.
● Utilities such as electricity bill
● Moving to a temporary location.
● Payroll for your employees.
● Internet and telephone connections.
● Lost revenue
● Taxes and loan payments.

Coverage begins at the moment of the loss and continues until your business can reopen. You should always keep reviewing your policies to check for any missed dates or premiums.

Now, let’s talk about what a business interruption insurance would not cover:

● Contractual Liability
● Cost Guarantees
● broken or lost items
● Damage from floods or earthquakes is covered by a different policy.
● Undocumented money that isn’t recorded in your company’s books
● Damages arising out of pandemics, viruses, and infectious diseases

How does it protect my company?
All business owners should have Business Interruption Insurance as a type of protection against missed income due to an insured loss. Doesn’t matter if you are a small business just starting or a large corporation looking to expand internationally, you must always safeguard your business from accidental losses.

Your business is most probably your biggest investment, of both time and money. Then, shouldn’t it make sense to protect it from every possible threat that could have a devastating aftereffect?

The insurance will cover the damage until the end of the interruption period, which is referred to as peril. It will protect your company from tumbling down due to the unexpected. Some examples of how insurance can protect your company are:

● Profits that would have been received had the event not occurred are reimbursed.
● Operating expenses such as bills would be reimbursed
● Cover the cost to replace machinery
● Reimbursement of extra expenses
● Coverage of yours as well as your employees’ wages
● Loan and Tax payments are taken care of

Why Choose Beneficial Insurance Solutions
You know to expect the unexpected as a business owner. But the aftermath of a crisis may be daunting, and filing a commercial insurance claim can be both complicated and taxing on your team. Having the relevant expertise and support when a loss occurs becomes crucial in such conditions.

At Beneficial Insurance Solutions, we offer the best business interruption insurance in Canada. We have a team of experienced licenced brokers who would help you navigate through your distress times easily. They are adept at choosing for you insurance solutions that would best meet your business’s needs. Click here to get a quote today.