find a broker

Find a Broker

FR

LoginMy Account
Western Financial Group Western Financial Group
  • Personal

    Home Insurance

    Home Insurance

    Condo Insurance

    Renter's Insurance

    Seasonal Property Insurance

    Mobile Home Insurance

    Vehicle Insurance

     

    Car Insurance

    Motorcycle Insurance

    RV Insurance

    Boat Insurance

    ATV Insurance

    Snowmobile Insurance

    Vehicle Replacement Insurance

    Health & Life Insurance

    Life Insurance

    Disability Insurance

    Critical Illness Insurance

    Mortgage Life Insurance

    Financial Insurance

     

    TFSA

    GICs

    RESPs

    RRSPs

    Travel Insurance

     
  • Business

    Commercial Insurance

     

    Business Insurance

    Business Life Insurance

    General Liability Insurance

    Commercial Property Insurance

    D&O Liability Insurance

    Rental Property Insurance

    Legal Protection Insurance

    Errors & Omissions Insurance

    Cyber Liability Insurance

    TotalProtect Insurance

    Fleet Insurance

    Farm Insurance

    Product Liability Insurance

    Employee Benefits

    Employee Benefits

    TotalGuard Insurance

    Group Insurance 

     

    All Insurance Programs

    AMM Municipal Insurance Program

    CRA Insurance Program

    CVMA Insurance Program

    Crop Inputs Insurance Program

    Haven Municipal Insurance Program

    Hospitality Insurance Program

    Juno Restaurant Insurance

    BCRFA Restaurant Insurance

    Groupex Insurance Partnership

    CAM Movers Insurance

    Musical Instrument Insurance

    Independent Retail Insurance

    CAMA Insurance Program

    Biz Benefits Partnership

     

    Event Liability Insurance

     

    Charity Events or Fundraising Insurance

    Conferences and Conventions Insurance

    Corporate Events and Seminars Insurance

    Farmers’ Market Insurance

    Festival Insurance

    Hole-in-one Contest or Golf Tournaments Insurance

    Product Launches and Promotional Events Insurance

    Sporting Event Insurance

    Wedding Insurance

    Industries

    Cannabis

    Construction

    Contractors

    Daycares

    Greenhouses

    Hotels and Motels

    Manufacturing

    Municipalities

    Professional Services

    Property Management

    Retail

    Restaurants, Cafes, Delis, Fast Food

    Skilled Trades

    Technology

    Welders

  • Services

    MyWestern

    Payment Setup

    Registry Services

    Community Emergency Resources

    Personal Insurance Claims

    Commercial Insurance Claims

    Risk Management

  • About Us

    About Western

    Who We Are

    Executive Team

    Divisions

    Partners

    Western Coast Insurance

    Wyatt Dowling Insurance

    Sustainability

    Diversity, Equity and Inclusion

    Western News

    Blogs

    Careers

    Contact

    Communities Foundation

    Our Giving Programs

    About the Foundation

    Annual Giving Reports

    Annual National Walk

    Community Infrastructure Grants

    Foundation FAQs

    Sponsorship

    Western Communities Foundation

    Your donation will help improve local communities.

    Donate

1-866-860-1958

Get a Quote

Get a Quote

Main Menu

  • Personal
    • Home Insurance

      • Home Insurance

      • Condo Insurance

        Renter's Insurance

        Seasonal Property Insurance

        Mobile Home Insurance

    • Vehicle Insurance

       
      • Car Insurance

      • Motorcycle Insurance

        RV Insurance

        Boat Insurance

        ATV Insurance

        Snowmobile Insurance

        Vehicle Replacement Insurance

    • Health & Life Insurance

      • Life Insurance

        Disability Insurance

        Critical Illness Insurance

        Mortgage Life Insurance

    • Financial Insurance

       
      • TFSA

        GICs

        RESPs

        RRSPs

    • Travel Insurance

       
  • Business
    • Commercial Insurance

       
      • Business Insurance

      • Business Life Insurance

        General Liability Insurance

        Commercial Property Insurance

        D&O Liability Insurance

        Rental Property Insurance

        Legal Protection Insurance

        Errors & Omissions Insurance

        Cyber Liability Insurance

        TotalProtect Insurance

        Fleet Insurance

        Farm Insurance

        Product Liability Insurance

    • Employee Benefits

      • Employee Benefits

        TotalGuard Insurance

    • Group Insurance 

       
      • All Insurance Programs

        AMM Municipal Insurance Program

        CRA Insurance Program

        CVMA Insurance Program

        Crop Inputs Insurance Program

        Haven Municipal Insurance Program

        Hospitality Insurance Program

        Juno Restaurant Insurance

        BCRFA Restaurant Insurance

        Groupex Insurance Partnership

        CAM Movers Insurance

        Musical Instrument Insurance

        Independent Retail Insurance

        CAMA Insurance Program

        Biz Benefits Partnership

         
    • Event Liability Insurance

       
      • Charity Events or Fundraising Insurance

        Conferences and Conventions Insurance

        Corporate Events and Seminars Insurance

        Farmers’ Market Insurance

        Festival Insurance

        Hole-in-one Contest or Golf Tournaments Insurance

        Product Launches and Promotional Events Insurance

        Sporting Event Insurance

        Wedding Insurance

    • Industries

      • Cannabis

        Construction

        Contractors

        Daycares

        Greenhouses

        Hotels and Motels

        Manufacturing

        Municipalities

        Professional Services

        Property Management

        Retail

        Restaurants, Cafes, Delis, Fast Food

        Skilled Trades

        Technology

        Welders

  • Services
    • MyWestern

      Payment Setup

      Registry Services

      Community Emergency Resources

      Personal Insurance Claims

      Commercial Insurance Claims

      Risk Management

  • About Us
    • About Western

      • Who We Are

        Executive Team

        Divisions

        Partners

        Western Coast Insurance

        Wyatt Dowling Insurance

        Sustainability

        Diversity, Equity and Inclusion

        Western News

        Blogs

        Careers

        Contact

    • Communities Foundation

      • Our Giving Programs

        About the Foundation

        Annual Giving Reports

        Annual National Walk

        Community Infrastructure Grants

        Foundation FAQs

        Sponsorship

LoginMy Account

FR

1-866-860-1958

Get a Quote

Find a Broker

Business Interruption Insurance Basics

Business Interruption Insurance Basics

What if your business is forced to unexpectedly shut down due to a supply chain disruption, or you need extensive repairs after vandalism or a fire and you can’t stay open? The bills don’t stop coming and your business isn’t generating any income.

Whether you are a restaurant owner in North Bay or Cornwall, or a retail store owner in Richmond Hill or Kitchener, or a contractor in Pembroke or Bolton, business interruption insurance can help you stay afloat when an unexpected interruption occurs.

Business interruption insurance basics

  1. What is business interruption insurance and what is covered?

If your business is forced to close due to an insured loss, business interruption insurance will help you with expenses to get it up and running again. You might also hear it referred to as business income insurance.

Usually, a business interruption loss is only covered if it’s the result of an insured physical loss or damage to your property. Your policy will describe the specific events that apply to business interruption coverage.

For example, business interruption insurance would respond due to an insured peril such as damage to your storefront from vandalism causing your store to close, or a supply-chain disruption if one of your suppliers has a fire.

Other examples can include:

  • Damage to a neighboring business that impacts customers’ ability to access your business
  • Windstorm causing a power outage resulting in the business being closed for an extended period of time.
  1. How does it work to protect my business?

Business interruption insurance will help you cover business expenses that continue to occur and lost income while your business is temporarily closed. Here are examples of expenses that you can expect to be covered, depending on your policy, if your claim is accepted:

  • Your employee payroll
  • Rent, hydro, electricity, and other utilities
  • Alarm monitoring
  • Property taxes
  • Lost Profits
  • Interest on mortgage or loans

This type of insurance is recommended for food service, retail, construction and contracting, cleaning, building design and business consulting in the event of a business disruption.

Having business interruption insurance can make the difference between reopening and closing your business permanently.

  1. How long does it last?

Business interruption insurance has an indemnity period, which is length of time you are covered for the loss of business.

It typically starts when the physical loss or damage occurs -- the day that the interruption happens and it ends when the repairs, rebuilding or replacement have been completed and your doors are open for business. For example, this would be the day your contracting business reopens after a fire.

Additional forms of business interruption are available that will continue to respond past the point of reopening and up to the point at which the business has returned to the same profitability level at the time the loss occurred, or the indemnity period has ended, whichever occurs first.

There could also be a waiting period, which is a specified number of days after the physical damage occurs, before coverage for business interruption loss takes place.

However, getting reopened needs to be done within a reasonable period and you will need to check the amount of time your business will be covered. Don’t expect that you will be able to put off repairs because you are taking some time off.

There may also be limits on how much your policy will pay out in a month.

  1. How much business interruption insurance is needed?

You’ll need to discuss how much business interruption insurance you will need with your insurance expert. A business interruption worksheet can be completed to ensure you are covered correctly because you want to ensure the coverage amount required is in line with your indemnity period.

  1. Are there different types of business interruption insurance?

Not all business interruption insurance is the same. Here are different types of coverages that you can consider:

Gross-Earnings Form: Typically calculated using the calculation (Sales - Cost of Goods Sold) and is designed to cover the reduction in the insured’s gross earnings as a result of a direct damage loss. This coverage lasts only until a damaged building or property is rebuilt or repaired and the business is reopened.

Profits Form: Coverage provided to a business owner for lost profits and continuing fixed expenses that occur while a business closed due to an insured peril, while the premises are being restored because of physical damage. Coverage provided will continue to pay until the business is back to the same profitability level prior to the loss – within the designated indemnity period.

Extra expense coverage: If your business needs to continue to operate while it’s being repaired, you will likely have additional expenses like rentals, outsourcing, temporary utilities at another location, advertising and moving expenses. In this case, you should consider making sure these expenses are covered by your business interruption insurance.

GET A QUOTE

Recent Blog Posts

Mark Missal Farm Insurance
Western's Farm Insurance Has Roots in Our Communities

May 8, 2025


Spring Cleaning Boat
Why You Need to Clean Your Boat in the Spring

May 7, 2025


Car Kill Switch Theft Prevention
Will a Kill Switch Stop My Car from Being Stolen?

May 5, 2025


Western Financial Group

2025 Western Financial Group. All rights reserved.

Privacy / Legal | Accessibility Guidelines | Fair Treatment of Customers Policy | Terms of Use | Compensation Disclosure | Complaints Process | Media Relations | Mergers & Acquisition | Careers | Sitemap