Lorne Wiebe is a well known former Cornwall broadcaster. Even though he now calls Ottawa his home, he has a special affinity for Cornwall and SD and G. He now works at Rhodes & Williams Insurance Ltd. and partners with the local business community to help them deal with their day to day risks. If you have questions or wish to contact Lorne, you can email him at email@example.com
When The Money Stops
Recently we featured a Risky Business article which spoke about how business owners and their insurance brokers need to get good at digging for holes; those potential gaps in insurance coverage which may be easy to overlook but can be deadly to the survival of a company after it suffers a serious loss. Here is one of those holes to look for in your insurance coverage.
Ottawa - May 1, 2012 - Recently we featured a Risky Business article which spoke about how business owners and their insurance brokers need to get good at digging for holes; those potential gaps in insurance coverage which may be easy to overlook but can be deadly to the survival of a company after it suffers a serious loss. Here is one of those holes to look for in your insurance coverage.
Most basic commercial insurance policies include coverage for your property and equipment and your stock for physical damage which was the result of an insured peril. Usually the policy also includes some protection in case you unintentionally hurt someone in the course of running your business - that's the liability section of your policy. So you're fully covered, right? Wrong.
Let's imagine that your business suffers a fire and has to shut down for three months in order to rebuild and repair. In this hypothetical case, insurance covered the cost to physically repair the structure back to its original state and you are ready to re-open. Just one problem and it's a big one. Where does it say in your basic insurance policy that you will be compensated for the loss of income that your business has suffered? Probably no where. The policy may cover your physical loss but not necessarily your financial loss and that is where the correct business interruption coverage kicks in.
Usually you have to purchase business interruption coverage as an addition to your basic policy but it just might be the best investment you ever make. Many businesses shut down permanently after a major loss but you could improve the odds if your insurance coverage continued to provide you with income just as if your business was still generating a profit. Now, there are some differences when it comes to the various types of business interruption coverage so discuss the levels with your broker. Some policies will continue to provide you with income until your company is again generating a profit. This coverage can be a huge help as you try to regain your customer base or make up for contracts that you lost while you were rebuilding your business. If you’re not sure that you have this coverage, now might be a good time to give your broker a call.
Presented here is a general article about insurance. The discussion is general in nature, and does not constitute insurance advice. This is not intended to be a description of coverage, and does not include details of the coverage nor the terms, conditions, qualifications, limitations and exclusions applicable. Policies should be reviewed in their entirety and related to your specific operations. Many insurers permit changes (Changes to insurance policies are usually called "endorsements" or "riders") in their limitations or exclusions to match your specific requirements. As insurance advice must be tailored to the specific circumstances of each situation, nothing provided herein should be used as a substitute for the advice of a competent insurance broker. IN NO EVENT WILL RHODES & WILLIAMS LIMITED BE LIABLE FOR ANY DAMAGES WHATSOEVER, INCLUDING SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE INFORMATION PRESENTED IN THIS DOCUMENT.
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