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Business
Interruption
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To
discuss your Business Interruption Insurance
needs contact Mark Holman at
905-886-5630 or 1-800-567-1279,
or fill out the online quote
form.
Holman Insurance Brokers Ltd. recognizes that insurance against
loss of business income resulting from damage to property is as
important as insuring the property itself.
Business Interruption Insurance can be as vital to your survival
as a business as fire insurance. Most people would never consider
opening a business without buying insurance to cover damage due
to fire and windstorms. But many small business owners fail to think
about how they would manage if a fire or other disaster damaged
their business premises so that they were temporarily unusable.
Business interruption coverage is not sold separately but it can
be added to a commercial property insurance policy or included in
a commercial package policy. A business that has to close down completely
while the premises are being repaired may lose out to competitors.
A quick resumption of business after a disaster is essential. There
is generally a 48-hour waiting period before business interruption
coverage starts.
Business interruption insurance compensates you for lost income
if your company has to vacate the premises due to disaster related
damage that is covered under your property insurance policy, such
as a fire. Business interruption insurance covers the profits you
would have earned, based on your financial records, had the disaster
not occurred. The policy also covers operating expenses like electricity
that continues even though business activities have come to a temporary
halt.
Generally business interruption insurance limits are sufficient
to cover your company for more than a few days. After a major
disaster, it can take more time than many people anticipate for
the business is back in operation.
The price of the policy is related to the risk of a fire
or other disaster damaging your premises. All other things being
equal, the price would probably be higher for a restaurant than
an accountants office, because of the greater risk of fire. Also,
an accountant can easily operate out of another location.
We offer many different business interruption forms, in order to
properly respond to the unique characteristics of your business.
For example, if you are a building owner, you can insure against
the reduction in your rental income. If you are a manufacturer,
you can obtain coverage for extra expenses to continue operations
at temporary premises, as well as to insure the shortfall in your
gross earnings following a fire or other accidental damage at your
regular location.
There are several forms of business interruption coverage available
depending on the needs of the business. These can be in the form
of Gross Earnings, Profits or Actual Loss sustained.
It is also even possible to cover the additional costs of Professional
fees incurred in order to determine the loss in the event of
a claim. Whatever type of business interruption coverage you choose,
various extensions are available. These include power interruption,
as well as interruption resulting from damage at suppliers’ and
customers’ premises.
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