What type of coverage do you need?

couple standing in front of shopA fire wipes out a retail store. A storm destroys a plumbing company's equipment within a few moments. The attorney's office is facing months of impossible repair to a structure damaged by a tornado. What can help these businesses to get back on their feet?

Business insurance can help. The overall benefit depends on the type of plan the company has. There's one important thing to remember. An event like this can happen to any company. There is no warning. There is no way to prevent it. It can happen to your company.

What Is the Risk?

A significant event like a fire or storm can cause a large amount of damage to any structure. Reports indicate that 40 percent of companies facing this type of loss never open their doors again.

Most business insurance can help. Even a basic BOP plan will help the company recoup some of the losses in property and inventory. The policy may offer enough coverage to rebuild the structure. It can help to replace lost equipment, too. So, why do companies not reopen?

The risk comes from the downtime. The repair time for such an event can take months if not longer. During that time, the company must continue to meet their financial obligations. They need to keep paying employees to keep them from going to other jobs. They need to pay vendors to ensure they maintain key contracts. The company needs to pay for utilities and other expenses. Even without income, companies must pay expenses.

How Can You Avoid This?

To avoid this type of loss, invest in business interruption insurance. This is a secondary layer of financial protection. It helps to provide an income to the company during extended downtime.

The insurer determines the amount paid based on business income. How much does the business earn during this time of the year? With these funds, the business owner can continue to meet his or her obligations. This can help ensure that the company can get back on its feet.

It is also important to look over the existing business insurance plan. Make sure the coverage limit is enough to cover rebuilding the structure. It should also cover the contents fully. Work with your business insurance agent to be sure this type of protection is in place now.

Do you need business insurance? Dean Heckle & Hill, Inc. has you covered. Call us at (704) 847-4438 to learn more about our business insurance offerings. You can even get a quote right now.

Posted 11:00 AM

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