Business Interruption Insurance

What would you do if something disrupted your business so that you could not continue? It doesn’t matter if you are a service business or a manufacturer. Everything is stopped and your life is put into a difficult position. In addition, the effect on your employees and everything you have worked years to build is suddenly changed.

Think not only about the loss to you, your family and their future, but think about your employees and the effect on them and their families and what would happen to employees who have been with you for years and are totally dependent on having their job.

Over the years, Schweickert & Company has had a number of clients who have had losses that could have been critical to their continuation in business. However, thanks to Business Interruption Insurance policies they all were made whole following the event.

The first example of a Business Income Insurance claim was a fire that destroyed a professional medical building and one of our clients lost their office and a surgical suite which housed some very expensive equipment. Fortunately they had a very complete office package which included all of the coverage necessary to replace all of their equipment and to provide the income necessary to retain their entire staff for the four months required to obtain and equip a new office. In addition they received an amount equal to the lost profit the practice would have earned if the fire had never occurred.

The second example was an Income Replacement Insurance claim that involved one of our theaters that could not continue their normal performance because civil authorities would not allow access to the property due to damage to the roads around the property form very heavy flooding. The theater was fine, but the patrons could not get to it because the roads were closed down. This lasted for four days. The theater had Business Interruption coverage with a two performance deductible that provided for recovery of the admissions lost for the two remaining days.

It’s sometimes impossible to avoid tragedy, but the resulting loss doesn’t need to ruin your business. No matter the size of your business, large or small, Schweickert & Company can help you protect the value of your business and income by structuring an Income Replacement Insurance program for you and your company.

Schweickert & Company has years of experience in helping clients design and implement Business Interruption coverage.

When designing a Business Income Insurance program you will need to determine the amount of coverage you need to cover all or a portion of a loss.

Some of the considerations you will have to deal with are:

1. How long will it take to get back in business?
2. If you need special equipment - how long will it take for it to be delivered?
3. Will you need special materials?
4. How long can you continue to pay your rank and file employees?
5. How long can you keep and pay your key people.
6. How long can you continue to pay for your employee benefits?
7. If you have lost your distribution channels to competitors, how long will it take to get them back?

In addition there are many other consideration including where could you move your business and when everything is said and done how much profit will you loose and how much additional expense will you incur as a result of this loss.

Don’t put off making that call, let Schweickert & Company’s experts work with you to put in place an Income Replacement Insurance policy that will sustain you and your company in the event of a disaster like this.

Give us a call and let us help you protect the future of you and your business.