Business Interruption Insurance
Gross Earnings Coverage
Provides coverage until your insured property is replaced or repaired even if you haven’t regained your previous earning level.
Provides coverage until your business returns to its normal, pre-interruption level of profits, up to your policy limit and coverage period.
Designed for businesses that are able to continue running while recovering from damage, it covers extra expenses like re-locating to another building temporarily, short-term repairs, additional advertising or outsourcing work.
Rental Income Coverage
Designed to provide lost rental income that is generated on the insured premises. Coverage is provided until the repair or replacement is complete, up to your policy limit and coverage period.
Actual Loss Sustained
Provides coverage for loss of gross profits and extra expenses including rental value, up to your policy limit and coverage period and is considered to be the broadest scope of business interruption coverage.
FCA is Canada’s Commercial Insurance Expert Since 1919
FCA has been providing Canadian companies with commercial insurance since 1919. We have set the industry standard for turnaround time for both new and existing clients. We pride ourselves in ensuring our clients are receiving the best suite of coverages at a fair price.
There are two basic forms of business interruption indemnities or coverages that are available:
- Extended (or profits): continues to pay until your business resumes its normal level of production, pre-interruption level of earnings, subject to the maximum period of indemnity listed in your policy.
- Limited (or earnings): pays only until the damage is repaired or the property is replaced. As soon as your business is operational again, the policy stops paying even if you haven’t regained your previous level of earnings.
To get started with obtaining Business Interruption Insurance, companies need to provide a business interruption worksheet which is instrumental for identifying appropriate coverage.
This worksheet typically includes:
the value of all goods produced and/or sold and all services rendered during the fiscal period from the operation of the business including amounts earned from investments (e.g. interest and dividends)
the amount by with revenue exceeds expenses in a given period of time
Insured Standing Charges
- All fixed expenses (e.g. building insurance, property taxes, depreciation & interest
- Expenses that do not vary with production/sales such as:
- Salaries of key management/employees
- Business and Realty Taxes
- Rent (fixed portion)
- Advertising and Promotion
- Office and Administration
- Among others
Note: Insured Standing Charges do not include:
- Depreciation of Stock
- Bad Debts
- Sales Commissions
FCA Insurance has a wide array of insurance markets that we work closely with to tailor the right insurance coverage for your business operations.
Business Interruption insurance does not cover a pandemic as this type of coverage is triggered when there is an occurrence of a physical loss or damage. Most business interruption policies contain a pandemic and virus exclusion.
This exclusion has been a hot topic of discussion and has been challenged legally since the COVID-19 pandemic began. While there have been a few exceptions, COVID-19 has not been classified as a physical loss. Businesses with business interruption coverage that sustained losses during the pandemic cannot expect recoup their rent or lost revenue.
Laura does the work to get us the best prices with the best coverage. She also keeps us abreast of the new types of insurance that a business such as ours might need. Her yearly renewal visit is comprehensive to say the least, but when she leaves, we all understand the exact nature of each and every policy our business has.
FCA covers us for all our business requirements, from equipment to liability, property, builds and everything in-between. Errol Williams is so patient and helpful; I am always confident that we are getting the best possible coverage at a competitive rate. Always the best service!
Jamie and his team have been great to deal with, providing transparent advice and excellent service!