BUSINESS INTERRUPTION INSURANCE
The Importance Of A
Business Interruption Plan
How To Protect Your Business
BY : SGI CANADA
Any business , from the smallest retail shop to the largest distribution plant , would be in a bad place if they had to close their doors for a period of time . While most business owners understand the need for insurance on their building and its contents and for general liability insurance , many don ’ t consider all the financial consequences their businesses could suffer from a sudden , temporary shutdown .
Think about the potential impacts . How would you and your family be affected by a sudden drop in business income ? Would you be able to keep up with both your personal bills and any regular business expenses such as your mortgage , taxes , and utilities ? What about your staff ? Without a steady income , would they leave you to find other work ?
SGI CANADA ’ s business interruption insurance is designed to protect business owners who have to shut down temporarily . This coverage ’ s features go beyond those of a standard commercial insurance policy . Business interruption insurance has been designed specifically to help with temporary business closures from a sudden and unexpected loss . It doesn ’ t matter if your building has flooded , if a car has driven through the front of your store , or if you ’ ve had damage from an electrical fire in your building . Business interruption insurance can help your company stay in the game while you ’ re fixing the problem .
Here are some of the important features of SGI CANADA ’ s business interruption insurance :
• Loss of Income – Recovering lost income will allow you to continue business operations . This lasts as long as the business takes to reopen or until you reach your previous income level while you ’ re trying to get up and running again . ( If you were to re-open but your income isn ’ t the same as it was before .)
• Continuing Expenses – Just because your business has stopped operating temporarily doesn ’ t mean the bills will stop coming , such as utilities , mortgage payments , property taxes , or employee salaries . You could lose contracts , partnerships , or employees if you can ’ t continue to make your payments .
• Increased Cost of Working – Relaunching your business may involve extra costs such as overtime or advertising . These costs could be covered if they help to reduce your overall loss .
Many business owners have never heard of business interruption coverage , or they believe that everything will be taken care of by their general commercial or liability policies . It ’ s important to know exactly what ’ s included in your current policy . It ’ s a good idea to review your commercial insurance policy with your broker to make sure you ’ re covered for any and all potential gaps .
You may also want to consider adding SGI CANADA ’ s extra expense coverage to your business interruption plan . This coverage helps with other expenses , such as the rental or purchase of temporary or new equipment , the costs of operating a temporary location , and the cost to prepare insurance documents if you have a claim .
Can your company really afford to shut down for a week ? A month ? Several months ? Contact your SGI CANADA insurance broker today to protect the future of your business . +
8 | FALL 2016