Ottawa - June 4, 2014 - So…what scares you? Spiders…snakes…breaking out before your big date? We all have fears and often there isn’t much we can do about them. But when it comes to running your business, there are tools available to help alleviate your biggest fears and one of those tools is insurance. So… what scares you? Is it...
Losing Your Loyal Customers?
Getting your business up and running again as soon as possible is critical after it suffers a serious loss. And each business is different when it comes to its contingency plans. For example, if you’re internet based and you could operate out of somebody’s basement (just illustrating…not suggesting…), then it might make sense to purchase coverage which includes a higher limit of “Extra Expense” coverage. This product can be used to pay for setting up your operation elsewhere, quickly. Conversely, if you run a restaurant in a great location with a loyal customer base, “business interruption” coverage can reimburse the business for lost profit until you’re once again well established following a devastating loss. It can be designed to pay out for 2 years or more because that’s how long it could take for your loyal customers to “find you” once again.
Losing Your Main Supplier?
If your business relies on a few key suppliers to survive, there’s an insurance product for that called “Contingent Business Interuption”. Usually it’s triggered when your supplier suffers an insured loss and is unable to continue to supply product for your business. This coverage can pay for your lost profits or extra costs involved in finding new suppliers. Of course, it’s always good practice to have identified other suppliers as a work around, just in case.
Losing That Important Shipment?
You might be surprised to learn how many companies import large shipments by boat and yet have no idea who is insuring it. Is that big piece of machinery insured by your client? The shipper? The Manufacturer? Who knows? And if that shipment is insured by the overseas manufacturer or shipper, how good is the coverage? Does it cover it port-to-port or warehouse-to-warehouse? Typically, it’s best to place your own marine cargo policy and be sure!
Losing Your Business?
Well, that’s a big one! That’s why it’s critical that you have a close working relationship with your insurance broker. There are so many moving parts to a business and its insurance coverage that it takes two sides to make sure everything is in place. Updated revenues, property limits and scope of operation are just a few of the variables where you and your broker need to be on the same page. Get any of those wrong and your business could be at risk. Get them right, and even when the worst happens, you should have no fear about what will happen next.