Business Interruption Insurance

No matter how many precautions you take, some circumstances are out of your control. This is especially true when it comes to running your own business. Because your ability to generate income could be threatened at any moment, business interruption insurance is particularly helpful. Oegema Nicholson and Associates can help you acquire the right coverage to protect your bottom line. Whether you own a retail outlet or accounting firm, our brokerage can bring you peace of mind and prepare you for whatever comes your way.

What is business interruption insurance?

This important coverage is vital to your survival as a business. Should a fire or other disaster damage your premises, your workspace could become temporarily unusable. This would then affect your ability to serve clients, severely impacting your income. Business interruption insurance allows the owner to collect the income they would have generated were it not for the unfortunate event. Business interruption insurance is not offered separately. It’s rolled into your property insurance as additional coverage. This coverage can be either a named perils policy or an all risk policy. The former covers a list of specific perils, whereas the latter provides protection against all perils — other than those specifically excluded from your policy.

How does it work?

Let’s say you own a clothing boutique, and a gas explosion has caused extensive damage to your store. For safety reasons, you and your employees have been barred from entering the premises. This means your boutique must remain closed until repairs are complete. Business interruption insurance would compensate you for lost income during this time. The period of time you’re covered can vary from policy to policy. This period is known as indemnity. There are two basic types of business interruption indemnities:

Limited – This type of policy will only pay until the repairs are complete. As soon as your business activities resume, your insurance will stop paying out — even if you’re not producing your previous level of earnings. Limited indemnity is much cheaper than an extended policy, but it may not offer enough coverage following a disaster.
Extended – This indemnity continues to pay until your business revenue is back at its normal, pre-disaster level. Just be aware that your policy will state a maximum period of indemnity as extended periods are not indefinite.

To determine how much revenue your business typically generates, your insurance provider will ask for your financial records. The policy will also cover your operating expenses, like hydro or internet, that continue even though your business activities are temporarily on hold. Oegema Nicholson can ensure your policy limits are sufficient to cover your business for more than a few days. Following a major disaster, it can take weeks or even months to get your operations up and running again. There is usually a short waiting period before business interruption kicks in. Our trusted insurance advisers can help you better understand your policy, so there are no surprises when you make a claim.

How much does it cost?

Your premiums for business interruption insurance is related to the risk of a fire or other disaster damaging your premises. This risk is often determined by the type of business, its location and whether similar claims have been filed in the past. Typically speaking, the costs would likely be higher for a restaurant than they would a law firm because there’s a greater risk of fire. Additionally, a law firm can more easily operate out of another location — whereas suddenly relocating a restaurant is nearly impossible. At Oegema Nicholson, our mission is to connect our clients with some of the lowest rates in the industry. Our insurance experts can shop around for you. We can help you choose the best policy that meets your needs — at a price you can afford.

Why trust Oegema Nicholson?

Proudly serving Canadians since 1961, Oegema Nicholson has the expertise to deliver a comprehensive policy for your business. We can help you develop an insurance coverage strategy that addresses risk and closes any gaps in your overall protection plan. Lost revenue will not only affect your business’ bottom line, but also the livelihood of your family. Have peace of mind knowing your income will be covered in the event of an unexpected emergency. For more information on business interruption insurance, call us at 613-224-1455 or contact us here.

Get a Quote

"Just wanted to leave a message for your website that praises Nik Dore for being a constant example of always providing invaluable customer service. I never worry that my questions and concerns will be dismissed or that I am receiving less than constructive advice. Many thanks to him."

&-–

"I know all my insurance needs are covered with Oegema, Nicholson & Associates. I have been a loyal client for the last 15 years, and I can count of them for my commercial insurance, employee benefits, as well as my personal insurance and finances. Jeff Richer always goes above and beyond to help me with my insurance needs."

O-Omkar Atwal, Owner, Leitrim Home Hardware

"It’s always a pleasure to deal with Oegema, Nicholson & Associates, and I can depend on them for all my insurance needs. I have been a client for several years and whether it’s regarding my personal insurance, or anything to do with our employee benefits or commercial needs, I know I’m taken care of."

R-Rhonda, Capital Dodge

"I would like to thank Carol for everything she has done for me and my family over the years. It is my honest belief that we would not be in the position we are in if it was not for her guidance, expertise and honesty. We can't begin to thank her enough."

T-Tim

"ONA helps me with my personal insurance and my business insurance . They are my one stop shop when it comes to insurance and group benefits. I know I’m covered in all areas. Great friendly service and knowledgeable staff!"

J-James Carriveau, President, Exact Interlock and Exact Properties

"One call to Oegema, Nicholson Associates is all it took. After our basement flooded, within a day or two they had a crew cleaning everything up, taking down the drywall and itemizing everything to be cleaned, thrown out or restored. They had everything in place for us in a timely manner and were extremely patient with me as they talked me through the process and waited for me to make decisions."

J-Jennifer Parks, Stittsville, Ontario

"I’ve been dealing with ONA for over 20 years with my personal insurance, as well as our commercial insurance, and I know I can rely on them for great customer service, and prompt responses. I feel confident not only referring them to my employees, but to our customers as well."

C-Charlene Brunet, President, Dan Murphy Ford

Saul Mendoza (Salty)

2023-06-02

My broker Bill C. from ONA has helped me over the years now with my vehicle insurance. He is very cautious and detail oriented when processing documentation, and ensures I understand everything whenever there are any changes. He recently helped me cut my premium almost in half just by improving my record and shopping around at the appropriate time. I am grateful to him and the team for being there for me when I need them.

RMP Tutoring

2022-05-14

I was assisted recently by Greg, who did a wonderful job in not only answering all of my questions and helping me to review pre-existing insurance plans, as well as advising me to look into my credit card/group insurance before needlessly purchasing more. This to me speaks highly of the character of the employee and business of a whole, and it is certainly the one I will be going to for any future needs.