Toronto Extra Expense Insurance

An Introduction to Extra Expense Insurance in Toronto

There are plenty of ways for enterprising individuals to make a living in Toronto. Increasingly, starting your own company has become more common than getting hired at an existing company, especially in a city the size of Toronto. There are opportunities to sell any product or service here because there is a market to support it. Wealth management firms on King, marketing agencies on Richmond and restaurants in Chinatown each add their own unique flavours to the melting pot that is Toronto. 

Entrepreneurs and established companies calling Toronto, the greater Toronto area and the surrounding 905 home, have recognized the potential for prosperity here. They also know that it is a highly competitive market. Which makes it imperative that if for any reason your business suffers an unforeseeable catastrophic event, you can continue serving your clients with minimal interruption and not risk losing them forever.

What is Extra Expense Insurance?

Before getting into the details of extra expense insurance and how it will help keep you running your business while the physical damage to your workspace is being taken care of, let’s first recap the basics of business owners’ insurance policies.

Commercial General Liability Insurance is coverage that protects a business in case someone is injured on its property or because of its products or services.

Commercial Property Insurance policies cover the costs of repairing or rebuilding the physical damage caused by a disastrous event like fire, flood, or vandalism.

Business Interruption Insurance helps a business pay its bills because it isn’t bringing in any, or enough, revenue while closed for repairs following a disaster.

In a nutshell, Extra expense insurance is an added layer of protection for businesses who need or recognize the need, to remain open while they work to repair the damage after a catastrophic event. Extra expense insurance coverage can cover the additional expenses associated with getting a business back up and running at their existing location if they suffered a loss. It can also cover the extra expenses a business would otherwise have to pay to temporarily move to a new location while its original building and equipment are repaired.  

Toronto extra expense insurance

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Companies that typically have extra expense insurance coverage as part of their risk management strategy:

  • Businesses that need to minimize the amount of downtime after a loss
  • Continuous service companies like the customer contact centres for any major corporation 
  • Essential services: banks, hospitals, retirement homes, etc.
  • Businesses that can’t easily move and are location-dependent like manufacturing, retailers, oil & gas, etc.

What Does Extra Expense Insurance Cover?

Extra expense insurance can cover expenses that are not part of the regular operating costs, and that are both reasonable and necessary for a business to continue operating despite a catastrophic event. Examples of those costs are in the following table.

Rent or Lease For the use of a temporary workspace
Moving costsTo move any equipment that can be easily moved
Extra Payroll A company may have to hire extra staff, outsource or pay overtime to existing employees to compensate for any work shortages suffered.
Equipment To purchase, or rent, and install equipment such as computers, generators, phone systems, production machinery etc. 
UtilitiesHydro, phone, gas, internet etc. fees on top of the ones already being paid.

How Much is Extra Expense Insurance in Toronto

The cost of extra expense insurance coverage will depend on a number of factors including type of business, type of coverage, amount of coverage desired and business location. Contact us today so that we can get started on making sure your business continues to operate no matter what happens.

Why Choose ALIGNED?

ALIGNED knows what it takes to successfully run a business in Toronto, including managing risk and staying competitive through any unforeseen circumstances that can happen to any business.

The ALIGNED Advocates in our Toronto location have a proven track record of finding the ideal coverage specific to each of our clients’ needs. 

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