This is a challenging and uncertain time for Atlantic Canadians. We are here to help and work with those adversely affected by the pandemic and are prepared to offer flexible solutions to customers. Insurance continues to play an important role in the overall economy, and therefore we remain open for business to assist consumers.

We are hearing all sorts of coverage questions from our customers, and we welcome yours as well.  https://info.otcinsurance.ca/ask-an-expert-commercial-insurance-questions 

Common questions these days are around Business Continuity or Business Interruption Insurance.  

 What is business interruption coverage?

Business interruption insurance covers ongoing expenses, staff wages, the profit you would have lost, and it pays to get you up and running again.
Some of the applicable situations would be if:

• Your business is seriously damaged by a fire
• A natural disaster levels your office
• An explosion is caused from pressure vessels or gas lines.

Business interruption or continuity insurance coverage is typically an add-on to an existing business insurance policy. In the event of loss or damage to a business or damage to a neighbouring property, requiring the business to shut down, business interruption insurance covers continuing expenses or replaces lost profits.  But does it cover me during Covid19?

Will my standard business policy or business interruption policy cover me for interruptions due to COVID-19?

Business interruption policies require proof that the insured premises sustained physical damage from an insured peril that was covered under their business insurance policy. Once that damage is established, the BI coverage is triggered for loss of business income. A business that is interrupted due to the pandemic may not have sustained any physical damage.

How does business interruption insurance work?

There are three types of Business Interruption policies:

Gross earnings policy, which pays only until property or damage is replaced or repaired, or stock is replaced.

Profits form policy, which continues to pay until a business resumes its normal, pre-interruption level (subject to policy limits).

Extra expense policy, which is designed for businesses that can remain operational during periods affected by loss and/or damage.

Am I covered by my business interruption insurance for COVID-19?

A business that is interrupted due to closure due to the pandemic may not have sustained any physical damage. Without physical damage to the insured premises the BI coverage is not triggered.

Should I be making a business interruption insurance claim given that I had to close down operations due to COVID-19?

All businesses are encouraged to talk to their insurance representative if they are unsure whether the business interruption coverage was triggered.

Are there any preventative measures that I can take to help ensure commercial insurance coverage remains in place and facilities are maintained due to my business closure?

Your business insurance policy may have coverage limitations if your business premises are vacant or unoccupied for 30 days or more. You should have someone visit the insured premises regularly to verify they are secure and check for any undetected damage. If you are unable to have someone visit your business premises, contact your insurance representative to determine what solutions are available.

If you have a question about Business Interruption insurance or any aspect of your commercial insurance reach out to us. 

Did you know that we also offer a free insurance assessment, helping you ensure you have the right coverage for your business needs.