Protect your revenue with coverage that keeps you in business
Most people would never consider starting a business without buying insurance to cover fire damage. However, it’s just as important to get insurance to cover your loss of income while the building is being restored. Business interruption insurance compensates you for your lost income while your business is closed due to an insured loss.
You can add business interruption coverage to your commercial property insurance policy. At The Co-operators, we can help you customize a plan that meets the specific needs of your business.
Types of business interruption coverage
Like your property coverage, you can cover your business for specific events listed in your policy, such as fire, theft, or vandalism, or choose broader coverage that covers most risks with some specific exclusions.
When it comes to protecting your business profits, there are a few more options to choose from.
Gross Earnings coverage pays only until your insured property is replaced or repaired. As soon as your business resumes, the coverage stops paying, even if you haven’t regained your previous earning level. Another version of this coverage limits not only the period of time you can be covered, but also the amount payable in any one month. Although this kind of coverage is less expensive, it may not be adequate for your needs.
A Profits Form policy continues to pay benefits until your business returns to its normal, pre-interruption level, up to your policy limits. This kind of coverage usually costs a bit more, but is well worth the price for many businesses.
Extra Expense insurance is designed for businesses that need to keep running while they’re recovering from damage. It covers extra expenses like re-locating to another building temporarily or outsourcing work.
If you generate income from buildings or space you rent out to others, you may want to consider Rent or Rental Value coverage. If you are out rental income because of an insured loss, this coverage provides you with the lost rent money until the repair or replacement is complete.
Actual Loss of Income coverage is an excellent, extremely broad form of business interruption insurance. It’s similar to a Profits Form policy, but it pays up to the actual loss sustained. For example, if your business property policy insures you for fire, and that fire is damaging enough that you can’t operate your business, you’ll be covered for the loss of gross profits and extra expenses, including rental value.
Not sure which is right for you? Your local Co-operators advisor can walk you through your options and find the right choice for your needs.