Business Insurance Austin Texas | MrBusinessInsurance.com
  • Home
  • About Us
    • Contact Us
    • Contact Form
  • Blog
  • Business Insurance
    • Business Insurance Basics
    • Business Insurance Costs >
      • Application
  • Product Liability Insurance
    • Restaurant Insurance
    • A&E Insurance
  • Certificates
  • FAQ
    • Privacy Policy

Three Steps for Keeping Your Business Running After Disaster Strikes- From the Insurance Information Institute

10/10/2013

0 Comments

 
 
1. Develop a Business Contingency Plan
  • Keep up-to-date, computerized and written records.
  • Identify critical business activities and resources needed to maintain customer service while your business is closed for repairs.
  • Do research before a disaster strikes by finding alternative facilities, equipment and supplies, and locating qualified contractors that can repair your facility, if needed.
  • Consider the resources you may need to activate during an emergency such as back-up sources of power, computers and communications systems.
  • Compile important contact information including employees, local and state emergency management agencies, major clients, contractors, suppliers, realtors, financial institutions, insurance brokers and claims representatives.
2. Have a Disaster Response Plan in Place
  • Set up an emergency response plan and train employees how to execute it. Make sure you include someone from each area of the business.
  • Appoint a leader to be in charge of developing, managing and updating your disaster recovery plan. This includes how you will communicate with employees, families, outside safety and emergency organizations, customers, neighboring businesses and, if necessary, the media.
 
3. Review Your Insurance
There are several forms of business insurance coverage to consider and discuss with your insurance professional:
  • Building Coverage provides coverage up to the insured value of the building if it is destroyed or damaged by a covered cause of loss, such as a hurricane.
  • Business Personal Property provides coverage for contents such as furniture, fixtures, equipment and machinery, computers, printers, inventory and supplies. It also includes coverage for personal property that is kept at the business site.
  • Business Interruption coverage typically comes into play if there is physical damage to the structure as the result of a risk or peril specified by the policy language. Remember: Most commercial property policies exclude flood coverage. 

    There are four types of coverage that are typically associated with business interruption coverage. Determine which coverages are right for you:
    i. Business Income provides coverage for lost revenue and normal operating expenses if the place of business becomes uninhabitable after a loss during the time repairs are being made. The amount of business income payment is determined by your company’s net profit or loss before taxes and continuing normal operating expenses, including payroll. Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster it can take more time than anticipated to get a business back on track. And be aware that there is generally a 24- to 48-hour waiting period before business income coverage kicks in. 
    ii. Extra Expense insurance provides coverage for the extra costs incurred above and beyond your normal monthly expenses—such as temporary relocation or leasing of business equipment—while repairs are being completed at your place of business. Extra Expense insurance can be combined with business income as part of the policy.
    iii. Contingent Business Interruption/Supply Chain Coverage compensates you for any income you lose due to property loss or damage at a supplier’s or customer’s location. The cause of the interruption must be from a covered peril and must result in physical damage that inhibits the third party from being able to supply or receive the insured’s goods. Supply chain insurance also offers business owners protection against both physical and non-physical interruptions to their business, such as strikes, riots, ingress/egress, pandemics and more. Any peril that interrupts a company’s supply chain can be underwritten into the policy. It is important to make sure your company’s records and books are up-to-date and accurate in order to be able demonstrate how a key component, product, supplier or re-seller contributes to company earnings.
    iv. Civil authority coverage pays for loss of income or extra expenses as a result of a government denying you access to your business due to a covered loss at a location owned by someone else.


Source:  http://www.iii.org/press_releases/insurance-lessons-learned-from-sandy-steps-to-keep-your-business-running-following-a-disaster.html
0 Comments



Leave a Reply.

    Categories

    All
    Bailee Insurance
    Builders Risk Insurance
    Business Insurance
    Business Insurance
    Coinsurance
    Commercial Property
    Cyber Insurance
    Data Breach Insurance
    D&O Insurance
    Employment Practices Liability (EPL)
    First Dollar Defense
    Flood Insurance
    Foreign Insurance Policy
    General Liability
    General Liability Vs Professional Liability
    Hired & Non-Owned Auto Liability
    Inland Marine Insurance
    Inland Marine Insurance
    Insurance For Engineers
    Life Insurance
    Liquor Liability
    Medical Payments
    Product Liability
    Professional Liability
    Professional Liability For Architects
    Restaurant Insurance
    Umbrella Insurance
    Workers Comp

    Archives

    April 2025
    March 2025
    February 2025
    January 2025
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    February 2024
    January 2024
    December 2023
    November 2023
    August 2023
    July 2023
    June 2023
    April 2023
    January 2023
    November 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    November 2021
    August 2021
    June 2021
    December 2020
    June 2020
    March 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    July 2019
    June 2019
    May 2019
    April 2019
    February 2019
    January 2019
    October 2018
    July 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    August 2017
    June 2017
    May 2017
    March 2017
    February 2017
    January 2017
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    April 2015
    March 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    November 2012
    April 2012

NOTICE: This blog and website are made available by the publisher for informational purposes only. It is not to be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher. ​
Photos from wuestenigel (CC BY 2.0), ccPixs.com, ctj71081, Joe The Goat Farmer, NordicPixels, Alan Cleaver, Seattle Municipal Archives, wuestenigel
  • Home
  • About Us
    • Contact Us
    • Contact Form
  • Blog
  • Business Insurance
    • Business Insurance Basics
    • Business Insurance Costs >
      • Application
  • Product Liability Insurance
    • Restaurant Insurance
    • A&E Insurance
  • Certificates
  • FAQ
    • Privacy Policy