Alberta is a great place to do business, but it also presents unique risks. Extreme weather is quite common in these parts. That’s why it’s important for companies of all sizes and all industries to carry business interruption insurance. Without it, you leave yourself open to unexpected surprises that can have a detrimental effect on your business operations. In many cases, uninsured interruptions even result in the company going out of business altogether.
Here’s a walk-through of what business interruption insurance is and how it protects you.
What Does Business Interruption Insurance Protect Against?
Business interruption insurance provides compensation for financial losses resulting from unexpected circumstances that cause temporary or long-term interruptions to your business operations. Examples of such situations include, but are not limited to:
- Power outages and blackouts
- Fire damage, either at your facilities or at the facilities of a key business partner or supplier
- Property damage, either at your facilities or at a location that you need to access as part of your business operations
- Loss or destruction of important intellectual property and proprietary goods or information
- The illness, injury or death of a key principal
- Equipment failures, breakdowns, sabotages, or thefts
This type of coverage also helps finance temporary operational headquarters, if you need to set them up to carry on with your business while your primary location is being repaired.
How Does Business Interruption Insurance Benefit Me?
Beyond the peace of mind that comes with knowing you’re protected, business interruption insurance offers several levels of financial protection:
- It covers you if an interruption results in the loss of income or revenues while you have to continue to meet expenses
- It gives you recourse if an interruption results in the loss of competitive advantage
- You may qualify for compensation if an interruption results in a key client or customer taking its business elsewhere
- You can be compensated against the incapacity or loss of employees your business depends on
Business interruption insurance also helps protect you against the financial pitfalls that come with having to finance re-openings and re-launchings. You’ll also be protected if an interruption or injury results in the short-term or long-term loss of your company’s earning potential.
Special Seasonal Insurance Considerations
Severe weather is becoming an increasingly important factor in the Alberta insurance industry. It’s already affected insurance premiums, and companies need to be mindful of the seasonal and weather-specific risks they face.
Winter weather can wreak havoc here in Alberta, causing all sorts of potential liabilities and other concerns for business owners. These include:
- Slip and fall injuries, which occur with more frequently in the winter due to the prevalence of ice and snow
- Business interruptions caused by inclement weather and the inability of key supplies to reach your facilities
- Issues arising from property maintenance, such as accumulated ice and snow in parking areas
Mitigating these risks is generally a fairly affordable proposition, and it helps to close off any gaps that may exist in your current coverage.
If your business operates in a flood-prone area, you should strongly consider adding flood insurance to your coverage package. This is a new type of coverage that has only recently become available in Alberta, and it gives you enhanced protection against floodwater damage that was previously excluded from policies and claims. Flood risks are particularly acute in spring, when melting snow combines with high precipitation to raise water levels across the province.
Business Insurance in Alberta: Trust Lane’s Insurance for All Your Coverage Needs
If you didn’t opt in for business interruption insurance when you bought your general commercial policy, it’s not too late. Interruption coverage can easily be added, but it’s a good idea to talk to your broker about your specific needs before making any final decisions.
The expert brokers at Lane’s Insurance are standing by to help you with all your commercial coverage needs, including business interruption insurance as well as:
- Commercial property insurance
- Contract surety bonds and commercial surety bonds
- Contractors’ insurance
- Oil and gas insurance
- …and much more!
As a brokerage, Lane’s Insurance works for you, not for the insurance providers. You’ll get impartial advice that protects your best interests, along with the most competitive rates on the market. Get started today by contacting a Lane’s Insurance representative.
