Running a business in dynamic cities like Mississauga and Toronto means facing endless opportunities—and plenty of unpredictable risks. One unexpected incident—a fire, vandalism, or severe storm—can force you to close your doors, halt your income, but your bills, staff salaries, and rent keep coming due. That's where business interruption insurance (BI) becomes a true business lifesaver.
What Is Business Interruption Insurance?
Unlike basic property insurance, which pays to fix your building or replace damaged equipment, business interruption insurance covers your lost income and ongoing expenses during periods when you can’t operate due to a covered event, like a fire or major break-in. In Mississauga and Toronto—where rents are high and competition is fierce—BI coverage can mean the difference between survival and financial ruin for businesses of all sizes, especially for retail shops, restaurants, salons, manufacturers, and professional offices.
Why Is It Essential Now?
Mississauga & Toronto see frequent property claims: From vandalism to weather damage, local businesses are never immune. The challenge is that after a loss, it often takes weeks or months to restore operations—without income, many businesses can't survive.
Only 23% of Canadian small businesses have BI coverage, yet one in five would shut within a month if sales stopped. Without this protection, “one bad month” could be your last month in business.
Rising risks, inflation, and supply chain dependencies in the GTA mean that even well-prepared companies face growing exposures.
What Does Business Interruption Insurance Cover?
Lost profits and ongoing expenses while your business recovers.
Employee payroll, lease/mortgage payments, taxes, utilities, and loan payments—even when you’re not open.
Extra expenses, like temporary relocation or expedited repairs needed to reopen sooner.
Contingent BI: Coverage if a supplier or key customer suffers a disaster, impacting your operations.
What’s Not Covered?
Most BI policies don’t cover events like pandemics (e.g., COVID-19), floods, earthquakes, terrorism, or undocumented income.
Coverage only applies to physical losses caused by a covered peril (e.g., fire, vandalism, windstorm).
Local Example
Imagine a Port Credit café hit by a kitchen fire. Not only are repairs needed, but the location is closed for two months. BI insurance pays for lost profits, rent, staff, and can even help cover moving to a temporary site—ensuring a smooth comeback.
Frequently Asked Questions about Business Interruption Insurance
Q1: How much does BI insurance cost in Mississauga or Toronto?
Premiums typically range from $100/year for small add-ons, up to thousands for larger operations. It depends on revenue, business type, location, number of employees, and prior claims.
Q2: Is BI included in my policy or separate?
BI is usually bundled with commercial property insurance or available as an add-on or endorsement. Ask your broker to make sure you’re covered.
Q3: What’s the “indemnity period”?
This is the duration BI benefits are paid—often 12 months, sometimes extended for complex recoveries.
Q4: What’s the claims process like?
Usually, there’s a 72-hour waiting period before coverage begins. Claims require proof of income loss, such as financial statements and payroll records.
Q5: Does BI cover supply chain interruptions?
Contingent BI extensions can protect if a supplier or key customer suffers a covered disaster affecting your revenue.
Why Trust a Local Insurance Broker?
As experienced insurance brokers serving Mississauga and Toronto, we customize BI insurance to your exact risk profile and industry. We know the neighbourhoods, the risks, and the importance of keeping your business stable during disruptions—and we back it up with one-on-one advice, risk assessment, and options from leading Canadian insurers.