Getting a Handle on Business Interruption and OC Insurance
Running a small business in the US sometimes involves a significant investment, and the loss of an important piece of machinery, a fire, or anything causing major delays or a cease in productivity can be devastating. Having OC insurance can help protect investments and soften the blow by minimizing the financial risks associated with any unexpected events, including a natural disaster.
Running an enterprise is a risky venture
As an owner of a company, should you experience a major claim that requires six months or more to rebuild your business, what would be the fallout? You may lose vendors and suppliers, along with many of your customers. Your employees may also be forced to look for other employment opportunities. In essence, you would be back at square one. You can see just how badly this loss of revenue would affect the company.
Avoiding claims whenever possible is always preferred, but having purchased the right coverage in the first place (before any claim situation occurs) is the best move you could ever make. No one can foresee the future, but this scenario is much better than realizing that the resources aren’t available to get back to being profitable again. Making the wrong decision about coverage might end up forcing you to close down permanently, as well as be left with a substantial deficit.
Most business interruption claims can be filed that will allow for the recovery of some of the losses incurred during the days the business was forced to close down. You’ll need to contact the insurance carrier and discuss the specific areas of coverage and determine the limits on property damage, and also put the insurer on notice that a claim will be filed. They will assign a claim number and establish a record of the claim.
You will need to identify areas of loss, including wages paid to employees, loss of sales, disruption to on-line sales, inability to obtain product from suppliers and additional expenses incurred to get back up and running, and gather documentation to support lost sales and additional expenses, including payroll records, historical sales and expense records and invoices for additional expenses incurred.
You can take solace in the fact that you made the right decision to purchase an orange insurance business interruption policy to help facilitate the situation.