Insuring Your Stamp Collection
November 29, 2015
The Worst New Years Resolutions
December 28, 2015Power Outages May Lead to Business Outages
Close up of electricity transformers up in power line post, against blue sky.
Recent heavy rainfall reminds us that not all disasters are brought on by tornadoes. I was attempting to get groceries at my local grocery store only to find several shoppers standing outside their doors. I was quickly told that the store was closed due to power outages. It made me wonder how much revenue and produce they loose as a result of this type of business interruption. Especially considering this is the second time this year, that I know of, that power has gone out at this grocer. The first time it occurred I had a half-full cart of groceries. Thankfully for them their registers have temporary power supplies that allow them to close out open transactions. But I couldn’t help but wonder the effects of a long lasting outage. Would I be seeing a lot of clearance items the following week on sour milk and not so frozen ice cream? Or worst a complete store closure? Seems far fetched doesn’t it.
“ Of those businesses that experience a disaster and have no emergency plan, 43 percent never reopen; of those that do reopen, only 29 percent are still operating two years later.”
Power outages, flooding, or other business interruptions like this creates an immediate need for all for all companies to take a closer look at their insurance plans. Would you be sufficiently covered in case of a natural disaster? Call us for advice anytime to review your coverage to ensure you are covered, not just for damages and lost inventory, but also for loss of business income.
Until we hear from you, I’ll go and enjoy that coffee cake made with sour milk.
What is Included in a Business Interruption Insurance Policy?
- Compensation for lost income if you are no longer able to operate your business due to a disaster-related damage that is covered by your current property insurance policy.
- Profits that would have been earned had the disaster not occurred. These numbers are based on previous financial records.
- Operating expenses that must be paid even if the business is temporarily closed. Examples are utilities, rent, etc.
- Expenses from a temporary location for you to operate out of while repairs are being made to your permanent location.
Business interruption insurance is one of the most valuable policies a business can have, yet it is often overlooked. Contact Us today to learn more about this valuable policy.
This Coverage Can Be Crucial To Your Company’s Survival
