Though business interruption claims surged during the pandemic, their relevance hasn’t faded. Rising cyber threats, stalled real estate projects, and Trump’s new tariffs are pushing companies to scrutinize their coverage. Brokers, once seen mainly as policy providers, are now being called on to anticipate - not just react to - crisis. In Ontario, a report by Youngs Insurance showed that 40% of small businesses were underinsured in at least one critical area, with underinsured businesses facing average losses of $427,000 from various claims in 2023.
Adam Murji (pictured), senior licensed insurance professional at FSB Group, has spent over 12 years helping businesses navigate those exact gaps. Whether it’s builders risk insurance stretched thin by delays, or clients burned by premiums with no refund clauses, Murji says the industry is adapting—but not fast enough for everyone.
“Business interruption coverage is generally important, but especially in today’s market,” Murji said. “In the event of a loss, revenues may slow down or even stop completely. Unfortunately, your expenses do not.”
That reminder isn’t just hypothetical. Murji pointed to the cascading consequences businesses face during recovery periods. Whether it’s fire, flood, or another disruptive event, the timeline to return to normal can be long—and expensive.
“In the event, say, your typical loss of fire… it may take four or five months for remediation and to get the business back to where it was before the loss,” he said. “So, in those four or five months, it’s hard to still generate revenue, and when your building is being fixed… some clients may lose employees, some may even default on their rent.”
To address this, more businesses are looking closely at their policies’ fine print, including the value of “profits form” coverage, which allows owners to recoup lost income and anticipated profits.
“Last thing a business wants is to be going on the up and up… or even just surviving… and lose that momentum,” Murji said.
That need to preserve momentum is playing out across sectors, with inflation and global economic shifts forcing insurers to rethink traditional approaches. Murji pointed to emerging uncertainty around international tariffs, noting that even after more than a decade in the industry, this kind of volatility is new.
“In the 12 and a half years I’ve been doing insurance, I don’t think we’ve had tariffs or the market expanding the way it’s expanding,” he said. “We haven’t received any bulletins or much news… I think the insurers themselves are still analyzing to see how this would impact the market.”
It’s a similar story in real estate, where developers face stalled projects due to financing issues and high interest rates. Since many builders' risk policies are designed around specific timelines and project milestones, these delays can create gaps in coverage.
“Usually with the bigger builders risk projects, they come in draws… [and] they don’t give you those draws unless a certain percentage of the project is done,” Murji said. “Not all insurers, but we had success with some where they are providing more leniency and extending past that 24-month term.”
Insurers are also enhancing builders' risk policies themselves, bundling once-separate protections under one offering. Flood, hailstorm, and windstorm coverage are becoming more common, and some policies now include coverage for both the construction site and the existing structure.
“Most insurers have adapted by now packaging builders risk policies with coverage for the existing structure… before, you’d have to get a homeowner’s policy and a separate policy for the project,” he said. “Builders risk policies are broader than a vacant dwelling policy… and we’ve come a long way in that regard.”
Still, those changes haven’t trickled down to everyone. Murji is especially concerned about smaller contractors and independent builders who may struggle with the financial realities of builders' risk premiums, which are often fully earned regardless of project completion.
“This could be tough for smaller contractors… because they’re just growing and there’s sometimes uncertainty with the project,” he said. “Maybe it doesn’t get completed as planned… I would like to see more of a minimum retained premium of 25 or 50% so at least… the client does get some kind of refund or credit back.”
Beyond physical risks, Murji was adamant that businesses also need to protect themselves from digital threats. Cyber insurance, he said, is no longer optional—it’s foundational.
“A cyberattack or breach can cause significant financial loss and even bankrupt a business… fortunately, many insurers are now providing first- and third-party cyber coverage products,” Murji said. “It is essential to speak to your broker to ensure your business is protected from cyberattacks and cybercrime.”
Whether it’s about fire, financing, or phishing, Murji’s outlook is rooted in foresight. To him, resilience isn’t just about having the right policy—it’s about staying ahead of change.
“The thing about insurance—changes are coming almost every day,” he said. “And we adapt to it as they come.”
