Business interruption coverage
Business interruption coverage is insurance that replaces lost income and pays certain extra expenses when a business cannot operate normally because of an insured event, usually physical damage to its premises or property. It is normally added to a commercial property policy and is limited by the policy's insured perils, waiting period, coverage limits and indemnity period.
How BC law treats it
No BC statute requires a business to carry business interruption coverage. It is voluntary, although commercial leases, loan agreements and other contracts often require it as a term. Insurance contracts in BC are subject to the Insurance Act, RSBC 2012, c 1.
What it means for your business
A business should review its lease and loan documents to see whether this coverage is contractually required and in what amount.
Risks and common mistakes
Choosing an indemnity period that is too short can leave a business uncovered while it is still rebuilding and recovering customers.
For the full explanation, see our entry on Business interruption insurance.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
