Some people say that the only certain thing about life is uncertainty. If you are in business, you need to take this philosophy into account, especially when you line up insurance coverage. Most people in your situation understand how crucial it is to get public liability coverage and workers' compensation insurance is mandatory if you take on any staff. However, you should think about taking on some additional protection should you be unable to operate your business due to an act of God or circumstances beyond your control. What is this protection, and what types of situations does it cover?
Standard Types of Coverage
If you own a building from which you operate your business, you may already have insurance to cover the structure in the event of a fire or other external threat. This coverage will typically extend to the contents, so all your furniture, fixings, goods and equipment will also be protected from theft.
Business Interrupted
Yet, even though you may receive a payout for your contents, goods or equipment, this may be insufficient. What if you are physically unable to operate your business due to circumstances beyond your control? In this case, you need business interruption coverage that is often available as an add-on.
The Risk of Flooding
In recent times, flooding has made headline news. It is an almost completely unpredictable type of event, and even properties that were once considered to be "safe" could now be affected by rising river levels due to climate change-induced storms.
Hard to Reach
Even if your business has not been physically flooded, it may yet be impossible for customers to get there due to nearby flooding. If you feel you may be at risk from this event, talk with your broker about getting that protection.
Paying out
When you have business interruption insurance linked to your commercial property insurance, the policy may pay you for any shortfall that you make against your expected profits. If you have to incur additional costs due to this interruption, the policy may also cover those.
Making Preparations
It's important to keep very clear and accurate records so that you can always show what business you would likely have incurred if it had not been interrupted. Once you have that information, discuss your needs with your insurance broker. This category of coverage is typically added as an optional add-on to buildings and contents insurance policies.
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