Compare Business Interruption Insurance

You could save thousands of dollars by getting multiple business interruption insurance quotes and comparing prices.

Get up to three business interruption insurance quotes by answering a few questions

How to shop for your next business interruption insurance policy on Hardbacon

Comparing the prices of several insurers before choosing a business interruption insurance policy can generally save hundreds of dollars a year. Follow these 4 steps to get quotes.

Tell us where you're located

The first step is to enter your province in the box on the left, then click on “Compare”. Your location will enable us to redirect you to the appropriate partner.

Tell us more about your business

The second step is to complete our partner’s form, which will begin by asking for the title of your profession, your gross revenue, the number of employees you have and your experience. It will also inquire about hiring exterior contractors.

Specify the risks involved

The third step is to answer questions about where you do business, if your work is related to industries such as cannabis, construction, petrochemicals, as well as other things you might do such as renting cars, visiting clients in their home, giving tax advice or conducting laboratory tests.

Finalize your request

The fourth and final step is to indicate your address, the proprietorship structure and the legal name of your business. At this stage, you will be able to choose if you want other protections on top of business interruption insurance. Once you submit your application, the quotes will appear on your screen.

Tips to save on your next business interruption insurance policy in Canada

Shop around for your insurance

Insurers are very competitive with each other. It’s therefore advantageous to get quotes from several companies or to find an insurance broker who’ll do it for you. If you have a company vehicle, bundling your insurance could possibly help you save money. While shopping, do not hesitate to ask which insurers offer discounts to members of your professional association, if you belong to one.

Increase your deductible

The deductible is the amount you’ll need to pay in the event of a claim. Normally, by increasing your deductible, you’ll lower your premium. You’ll have to pay a little more when making a claim, but this strategy can pay off very well if you don’t make a lot of claims.

Reassess your needs

Having coverage tailored to the real risks facing your business will ensure that you pay an amount proportional to your actual needs. You can always modify the contract as your business evolves over time. Remember, the higher the coverage amount, the higher your premium will be.

Choose a shorter period of compensation

A shorter indemnity period can help reduce your business interruption insurance premiums. If you have to interrupt your business, your insurer will pay benefits until the damage is repaired or the damaged goods are replaced. In comparison, with an extended indemnity period, which is more expensive, they will continue to pay your business interruption costs until your business returns to normal.

Frequently asked questions about business interruption insurance

How much is business interruption insurance?

The cost of business interruption insurance in Canada can vary significantly based on factors such as the size and type of business, location, coverage limits, and specific risks. Rates start at $100 per year. Premiums typically range from a few hundred to several thousand dollars annually. It is usually a small amount compared to the fixed costs of a business interruption, which include wages, rent or mortgage payments, taxes, relocation costs, etc.

Does business interruption insurance cover rent?

Yes, business interruption insurance usually covers certain expenses related to your business, including rent or lease payments, as part of its coverage. However, the specifics may vary among insurance policies, so it’s important to carefully review the terms of your policy.

What is business interruption insurance?

Business interruption insurance is a type of coverage that helps businesses recover financial losses resulting from unforeseen events that disrupt normal operations. These events can include natural disasters, fires, equipment breakdowns, or other circumstances that lead to business income loss. Any business can be disrupted or forced to suspend operations due to flood, windstorm, fire or earthquake. Depending on your company’s needs, there are two types of business interruption coverage: a policy covering events that are specified in the contract and a comprehensive policy which offers more extensive protection against business interruption.

What does business interruption insurance cover?

Business interruption insurance typically covers lost income (based on prior financial records), ongoing operating expenses such as rent, utilities, and employee salaries, temporary relocation costs, taxes and loan payments due during the covered period. It may include expenses related to business recovery efforts, such as marketing and advertising.

How do I get business interruption insurance?

To obtain business interruption insurance in Canada, use an online comparison tool to compare prices. Then, you should contact an insurance provider or broker specializing in commercial insurance. They will assess your business’s specific needs and provide you with policy options.

How much business interruption insurance do I need?

The amount of business interruption insurance you need depends on factors like your business’s size, industry, location, and risk exposure. A rule of thumb is to use your business’s gross earnings and projections to estimate future profits and determine the right amount of coverage. Ask your broker to help you calculate the right amount of coverage. It’s always advisable to conduct a thorough risk assessment to determine the appropriate coverage limits.

How long does business interruption insurance last?

The duration of business interruption insurance coverage is determined by the policy terms and can vary. Basic business interruption insurance usually provides a 12-month compensation period, but your business may need more time to get back on its feet. For example, you might be able to reopen after a couple of months, but your activities may not resume at full speed and your revenue will take longer to come back to its former level. It is possible to choose a prolonged compensation period. Coverage should ideally begin when the business interruption event occurs and continues until your business is back to its pre-loss level of operation.

Does commercial general liability insurance cover business interruption?

Commercial general liability insurance primarily covers liability claims related to bodily injury or property damage and does not typically include business interruption coverage. Businesses therefore need to purchase separate business interruption insurance to protect against income loss.

What is contingent business interruption insurance?

Contingent business interruption insurance is a specialized type of coverage that protects businesses from financial losses caused by disruptions to the operations of their suppliers or customers. It can be valuable for businesses that rely heavily on key suppliers or clients. Say, for example, that you are a manufacturer of knit goods and your supplier of synthetic wool suffers a fire, which shuts down their operation. You can no longer get materials from this supplier and your business sustains loss of income as a result. Insurance can help you.

Are business interruption insurance proceeds taxable?

In Canada, when a business receives lost revenue through a successful business interruption claim, it has to pay taxes on this income. Business interruption insurance proceeds are generally considered taxable income. However, specific tax treatment may vary based on factors such as the nature of the loss and the tax laws in your province.

Does business interruption insurance cover payroll?

Yes, business interruption insurance usually covers payroll expenses as part of its coverage. It helps ensure that your employees continue to receive their salaries and benefits during the period of business disruption.

Is business interruption insurance worth it?

Whether business interruption insurance is worth it depends on your business’s specific circumstances and risk tolerance. For businesses vulnerable to income loss due to unexpected events, such as natural disasters or equipment breakdowns, business interruption insurance can provide valuable financial protection and peace of mind. It’s advisable to evaluate the potential risks and benefits in the context of your business operations.

Business Interruption Insurance

You could save thousands of dollars by getting multiple business interruption insurance quotes and comparing prices.

Get up to three business interruption insurance quotes by answering a few questions