Strike Insurance: What It Is and What It Covers

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Strike insurance is a type of business interruption insurance that offers coverage for losses resulting from interrupted operations due to an industrial action.

Strike Insurance: What It Is and What It Covers

Strikes have a negative way of affecting businesses, making them experience losses that may cause the business a lot of harm. With this insurance, businesses can recover losses they encounter during strikes.

Strike insurance, also known as delay insurance, is offered by the strike club, which works just like other clubs. It is designed to cover the time lost in strikes that is not generally covered by other traditional business insurance policies.

Strike insurance does not only cover the business but also the financial losses to a business owner if their employees go on strike, stage a walkout, or carry out other types of interruption that may affect the business operations.

Getting this insurance policy is a good idea for businesses that tend to suffer financial losses during a strike.

How Does Strike Insurance Work?

In cases where your small business shuts down temporarily due to an employee strike, it can be quite difficult to maintain financial stability.

This is due to halted or decreased revenue, which affects your business. Strike insurance plays a big role in this type of situation, keeping you and your business shielded from financial losses.

The duration of your coverage determines how much income is covered along with your operation costs, such as loan payments, payroll, working capital, and rent.

After a 24- to 72-hour waiting period, your strike coverage will kick in. Currently, business insurance policies are written as open peril policies or as named peril policies. This means that all perils are covered except those that are excluded.

What Does Strike Insurance Cover?

While your business shuts down temporarily, your strike insurance offers coverage for a specific range of operational expenses. It shields the business from expenses such as:

  • Monthly overheads such as rent, lease, or mortgage repayments.
  • Unpaid loan installments.
  • Costs related to temporary relocation.
  • Foregone income.
  • Employee wages.
  • Promotional and advertising expenses.
  • Staff training on new systems or equipment expenses.
  • Utility bills.

These expenses are covered by your strike policy, making it easier for businesses and business owners to get back on their feet after experiencing losses due to a strike.

What It Doesn’t Cover?

Just like every other insurance policy, strike insurance has some expenses it does not cover. This insurance does not offer coverage for damages in cases where your employee steals or vandalizes your store.

It will also not cover the replacement of lost inventory. However, you may also not be covered if your workers were hired legally or paid under the table.

How Much Does Strike Insurance Cost?

How much strike insurance costs depends on factors like operating costs, coverage limits, and industry. These factors are placed together to determine how much your insurance coverage will cost.

However, on average, you may pay between $500 and $1,500 each year. The scope of coverage needed, industry risks, and location are common factors that affect the price of your strike insurance coverage. Also, riskier industries are generally considered to pay more.

How to Get Strike Insurance for My Business

When shopping for strike insurance for your business, it is a good idea to get quotes from different insurance companies.

These companies will require you to provide information such as the field you are in, your operating expenses, and earnings about your business. Doing this can easily help you determine the best insurance for your business against strikes.


Are strikes considered business interruptions?

Strikes are also considered business interruptions, and they can be covered under business interruption policy. The only time it would not be covered is if it was listed as an exclusion on your insurance coverage.

Does business catastrophe insurance cover strikes?

Business catastrophe insurance covers a business against the financial effects of weather events. Because of this, strikes are not covered by this insurance policy.

What type of business insurance covers strikes?

Under your business owner’s policy (BOP) and commercial insurance policy, also known as business interruption insurance, strikes are covered. If you already have these insurance policies, you need to read through them to see if they are covered.