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Decode different types of business interruption insurance


Consider what the plan covers

Gregory Rozdeba, president and co-founder of Toronto-based digital insurance brokerage Dundas Life, said that admins must understand exactly what types of costs are covered It’s also important to know what a policy won’t cover. “Most policies will not cover utilities or broken items, so you need to be prepared to go out-of-pocket for these,” Rozdeba said. “Go through the excluded events thoroughly before signing the policy so that you know what events are covered and which are not.”

To cover any policy gaps, Walzer noted that optional endorsements are available to provide enhanced coverage.

“For example, manufacturers and producers can obtain a special endorsement called contingent business income coverage, also known as dependent properties coverage,” Walzer said.

This endorsement is specifically designed to protect policyholders against economic loss caused by damage to property owned by other parties, such as upstream suppliers and downstream customers. Likewise, a utility services endorsement will extend coverage to any suspension of operations caused by a disruption of basic utility services delivered to a business’ premises, such as electric, gas or water deliveries provided by public or private utility companies.


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