The importance of business interruption insurance

October 2nd, 2014 by admin

Frank and Mirella Digenova own a small business in west end Toronto, Butcher by Nature, but in October 2011, a fire destroyed their property. The couple would have had to wait months for repairs, so they decided to temporarily move and operate their business from a location across the street.

Mirella explains that the couple has always paid close attention to their insurance coverage, especially business interruption insurance.

"We always made sure our policy was up to date. Every time we would get a new piece of equipment or update something we would add it to our policy," Ms. Digenova said.

Business interruption insurance, the Digenovas learned, was especially critical. "I've also learned a lot since the fire, like the need to keep employees' wages protected so they don't end up finding another job. These things can put everyone in a bind," she said.

Business interruption insurance also covers against losses incurred during natural disasters. 

Pete Karageorgos, director, consumer and industry relations for Insurance Bureau of Canada (IBC), explains how small business owners have many options when it comes to insurance. A commercial general liability policy is one of the most common forms of coverage for business owners. It protects business owners against losses which a customer, supplier or other party claimed they caused. Another factor professionals need to consider is whether they run business operations from their home since most standard home insurance plans do not cover losses to business property.

If you have questions about business or home insurance, contact Fundy Mutual. Our experienced team will work with you to protect your business or home.