In the past few months, the world has given us a lot of ‘teachable moments,’ including the value of preparing for emergencies. It’s clear that it pays to plan for different situations and have the right preparations in place.
Lately, many of my clients have been inspired to evaluate their own business continuity plans. To help inform these conversations, I like to ask if they’ve considered three ‘what if’ scenarios that could adversely affect their business-and their livelihood.
- There was a natural disaster such as a fire, flood or earthquake that interrupts your business operations? Would you be able to keep paying operating expenses and other bills?
- The building your business operated in was damaged or destroyed? How would you pay the expenses to replace your equipment or relocate entirely?
- Something happened to your warehouse or supplier and they couldn’t provide you with the stock you need? Would you be able to at-tract and keep customers if you weren’t able to fulfill orders?
If you’re concerned your business wouldn’t stay afloat in these scenarios, there is a solution—business interruption coverage. Its most valuable benefit is that it works to make your business whole again so that you can get back to generating the income you were prior to the loss.
Business interruption coverage reimburses you for lost profits and continued fixed expenses during the time your business is closed (while the premises are being repaired following an insured loss).
Covered expenses may include mortgage payments, taxes, utilities, accounting and legal expenses, interest on loans, salaries and the cost of insurance. Business interruption coverage will even top up your income after you’ve re-opened and cover advertising costs to let your clientele know when and where you’ll be back.
Did you know that companies that plan for emergencies and have appropriate coverage in place are much more likely to have a successful return to business? If you have questions about business interruption insurance, start by talking over your situation with an insurance expert. Contact me to find out how Coastal Community can help you ensure it’s business as usual.
Yvonne Jones, CAIB is a Commercial Insurance Advisor with Coastal Community Insurance Services (2007) Ltd.
For more information on business insurance services, call 1.888.741.1010 or book a call back appointment at cccu.ca.