Welcome to LMBF Assurances
Business interruption insurance is an essential part of any insurance policy for business owners, as it helps replace operating income lost due to an insurable claim that requires you to close temporarily. This commercial endorsement will cover most of the expenses needed during the interruption period, triggering when the business suffers a direct physical loss (or when a neighboring business suffers a loss and a civil authority shuts down all surrounding businesses) and ending when the business interruption period is over. In general, a standard policy is valid for 30 days, but some riders can extend this period up to 360 days. LMBF can help your business find the best business interruption insurance coverage to meet its needs. Talk to a broker or ask for a free quote today.
Business interruption insurance, or income loss insurance, is a business insurance rider that can be included as an option in your standard business insurance policy and covers various expenses during a period of forced closure due to an insurable event. These may include expenses such as income (based on past performance), employee salaries, taxes, rent, civil authority, training costs, relocation costs, and loan payments. Business interruption insurance is sold as a supplement, so it cannot be purchased as a standalone policy.
During a period of forced closure, your business interruption insurance policy offers financial recourse for the profits that would have been made. This amount is calculated based on the results of the previous month of your business.
Depending on the extent of the damage, your business may be forced to relocate temporarily. Your business interruption insurance policy can cover relocation costs, such as moving, rent, and operations.
Your business interruption insurance may include coverage for several costs related to regular business activities, such as operating expenses, employee pay, commissions, taxes, loan payments, training costs, etc.
It compensates for loss of income and certain fixed expenses when covered property damage results in stoppage or slowdown of operations.
The maximum duration during which the insurer will compensate for loss of income, according to the contract conditions.
Fire, water damage, vandalism, equipment breakdown or other damage covered by the property policy, depending on the coverages.
Dependency on a supplier/customers, denied access, utility failures, or equipment breakdown, depending on business needs.
Underestimating the actual recovery duration and choosing an indemnity period too short to return to normal activity level.
From financial statements (gross margin), fixed expenses, recovery timelines and critical dependencies (suppliers, equipment, location).
