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Oracle RMS Insurance

Business Interruption Insurance

Commercial Insurance — Oracle RMS Insurance

Business Interruption Insurance

Replace lost revenue and cover ongoing expenses when a covered loss forces your business to close or reduce operations.

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Business interruption insurance — also called business income insurance — steps in when a covered property loss forces your business to suspend or reduce operations. It replaces the income you would have earned and covers ongoing fixed expenses such as rent, payroll, and loan payments during the period of restoration. Without it, even a temporary closure can create a financial crisis that outlasts the physical damage itself.

Who needs this coverage?

Any business that depends on a physical location to generate revenue needs business interruption coverage. This includes retailers, restaurants, manufacturers, medical clinics, hotels, and service businesses. It is especially critical for businesses with high fixed costs or thin cash reserves.

Key coverages

  • Lost net income during closure
  • Ongoing fixed expenses (rent, payroll, utilities)
  • Extra expenses to resume operations faster
  • Temporary relocation costs
  • Dependent property coverage (key suppliers/customers)
  • Civil authority coverage (government-ordered closure)
  • Extended period of indemnity
  • Contingent business interruption

Frequently Asked Questions

What triggers a business interruption claim?
Business interruption coverage is triggered by a covered property loss — such as a fire, burst pipe, or windstorm — that forces you to suspend or reduce operations. The physical damage must be covered under your commercial property policy for BI to respond.
How long does business interruption coverage last?
Coverage applies during the "period of restoration" — the time reasonably required to repair or replace the damaged property. Most policies also offer an extended period of indemnity to cover the ramp-up time after you reopen.
Does business interruption cover a pandemic or government shutdown?
Standard business interruption policies require physical property damage to trigger coverage. Pandemic-related closures without physical damage are generally not covered under traditional policies. Some specialty endorsements may provide limited coverage.
How is the business interruption limit calculated?
The limit should reflect your gross profit (revenue minus variable costs) for the expected period of restoration, plus ongoing fixed expenses. Underestimating this figure can leave you significantly underinsured at claim time.
Is business interruption a separate policy?
Business interruption coverage is typically added as an endorsement to your commercial property policy, not purchased as a standalone policy. It must be paired with property coverage to respond to a loss.

Ready to review your coverage?

Speak with a licensed broker at Oracle RMS — by phone, video, or in person. We serve businesses across Canada.*

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* Commercial insurance services available across Canada, excluding Quebec.