Ontario Business Interruption Insurance

Business Interruption

Protecting your business and income.

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Online Business Interruption Coverage Quote
Online Business Interruption Coverage Quote

Ontario business interruption insurance

Business Interruption Insurance

Commercial property insurance covers loss of property, equipment or stock by an insured physical loss. The coverage does not provide protection if damage to business property results in a loss of earnings or income. This can leave businesses that have had an insured loss with large financial losses from their continuing expenses.

If you have a covered loss at your business, you may have to shut down while repairs are done. Your expenses will not shut down though and you will still have expenses such as taxes, rent, loan payments, utilities, or salaries to continue to pay. This could make or break a business while they are temporarly closed.

Business interruption insurance reimburses policyholders for the difference between expected normal income and the income earned during the period of interruption during an insured loss.

Business Interruption Terms

Insurance terms are not the same as accounting terms

Due to the fact that insurance terms are not the same as accounting terms, we have put a little "cheat sheet" on this page to help businesses get the right numbers to their brokers.

  • Income
    • The income earned by a business includes all monies from sales or services.
  • Continuing Expenses
    • Fixed and semi-fixed expenses that continue regardless of whether the insured is in operation or not. Rent, utilities, salaries, etc.
  • Gross Profits
    • The sum produced by adding to the net profit, before taxes, the amount of the insured standing charges.
  • Net Profits
    • The amount of gross profit minus all operating costs or other expenses.
  • Gross Earnings
    • The reduction in gross earnings, less charges and expenses, which do not necessarily continue during the interruption of the business.

Business Interruption Terms

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