Toronto Business Interruption Insurance

Business Interruption Insurance in Toronto – An Introduction

Without a doubt, the city of Toronto is a great place to own a business. With the size of its population, its diversity, and growing popularity, there’s no shortage of potential customers for your products or services no matter how niche they may be. Whether you sell pizza slices in Leslieville, own a boutique clothing store on Queen, or are a partner in a Bay Street law firm, the rewards can be great, but along with those opportunities come potential risks as well.

With the climate changing as it has in recent years, we’ve seen an uptick in the severity of weather events such as fires, windstorms, and – lately in Toronto – flooding. Any number of unforeseen events that are out of your control can cause structural damage to your brick-and-mortar business. If that happens, you could be losing revenue while you’re closed for repairs. Those losses can permanently put you out of business without some sort of safety net.

More about Business Interruption Insurance and Why You Need It

While your Property Insurance policy will help you rebuild or repair the physical structure of your business, it will not reimburse you for the revenue lost while your building is shut down. Meanwhile, rent, payroll and all your other operating expenses still need to be paid. This is where business interruption insurance comes in. With a business interruption insurance policy you are able to recoup the money you would have made if you didn’t have to close down for repairs if disaster strikes; keeping you afloat until you’re able to resume business as usual.

The table below shows the types of costs that a typical business interruption insurance policy would cover:


As stated above, a business interruption insurance policy will cover the income you would have made during the closure.


Not being able to pay your team or having to let them go is the last thing you want. With business interruption coverage you can keep your employees paid and employed until you’re ready to re-open.

Operating capital & interest

A lot of businesses make use of loans or lines of credit while in operation and without revenues, wouldn’t be able to make the monthly payments. A business interruption plan will help you manage those bills and keep you in good standing with creditors. 


As rent in Toronto is especially high, this is the expense that keeps business owners up at night. You can rest a little easier knowing your rent or lease payments are taken care of in case of an emergency covered by your policy.


Along with rent, taxes are another cost of doing business in Toronto that can get pricey. A business interruption policy helps to make sure you can pay your taxes when they’re due if your business is closed down due to a catastrophe.

How Much Does a Business Interruption Insurance Policy in Toronto Cost?

The cost of a policy depends on a number of factors including:

  • The location of your business
  • Type of business it is 
  • How long you want the coverage to last. This can be until your business reopens or until your profits return to pre-disaster levels.
  • The amount of revenue your business generates
  • Physical location of your business
  • Others

Why Choose Aligned for Your Business Interruption Coverage

Our ALIGNED Advocates are experts at helping business owners protect themselves from the financial losses caused by natural disasters and work hard to get you optimal coverage at the best rates for your specific business needs. 

Call ALIGNED Insurance today for all your business interruption insurance needs.

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