All you have to do is look out at the smoky skyline to see how BC wildfires are causing major damage to our landscape and local economies. Businesses in the province’s interior are seeing major interruptions in cash flow, either from being directly in the path of the fires or from tourists avoiding their area. BC wildfires are affecting local businesses in a variety of ways, so do you have business interruption insurance?
Business interruption insurance is designed to protect the earning power of your business. It provides coverage when the cash flow of your business is stifled for a number of reasons. It is also known as earnings insurance, profits insurance or income insurance. In the same way you can insure your earning power as an individual through life insurance, a business can also protect its’ revenue streams through business interruption insurance.
In BC there are currently hundreds of fires burning which are affecting thousands of local businesses. This ranges from physical assets in danger of being burned, or businesses which rely on tourists in the summer to keep their doors open. The current wildfire situation can result in a loss of income while operating expenses continue to mount, increased vulnerability to competition and temporary (or permanent) loss of customers. These are examples of financial losses that business interruption insurance can provide coverage for. This type of insurance can even cover projected profits that would have been earned while your business remains inoperable.
Here are some common business interruptions:
- Extended power outages
- Fire, flood or some other natural disaster
- Access to your business is denied due to fire or other damage to neighbouring businesses
- Loss of production due to a business interruption at one of your key suppliers
Are you concerned about the potential loss of income to a natural disaster? Given the current wildfire situation in BC (and expected in the future), contact the income protection experts at DENT Benefits to learn more about business interruption insurance.
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.