Office Building Fire

Let’s say your business suffers a fire loss: you are forced to close for two months to make repairs, and you find it takes another couple of months before your business returns to its normal level. How can you protect your property and your business?

In this situation, your property policy pays to repair the building and replace your contents.

On the other hand, your business losses (loss of income) are covered depending on the type of Business Interruption Insurance you’ve chosen:

  • Gross Profits Insurance or,
  • Gross Earnings Insurance

If you have Gross Profits Insurance, your loss of income is paid while closed for repairs and while you rebuild your business to its original level, up to the limit of coverage.

On the other hand, Gross Earnings Insurance only covers the income lost during the time required to repair the premises.

 

Now, what if your business interruption is caused by failure of a technology product or a cyber loss (data breach, denial of service attacks or virus transmission)?

In this situation, you’d need to have the appropriate Technology and/or Cyber insurance coverage.  (“Regular” business insurance would not protect you).

Colin is a Risk Management and Business Insurance advisor, hockey dad and chief mechanic @AdamMoorRacing

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