How would your business survive a disaster?

If you could not trade for three months, would your customers wait, or would they go to one of your competitors? It is not surprising that so many businesses faced with a lengthy disruption never recover.

A crisis can occur at any time

A situation threatening the survival of your business could be sudden. The most common hazards – flood, fire, utility issues, break-ins/vandalism – are the same whether you run a large company or a small corner shop. The effects can be potentially devastating.

So, do not wait until you’re swamped by the aftermath of a disaster. Now is the time to review your insurance to make sure you are fully protected. Business interruption insurance is designed to cover your organisation against loss of income as a result of being unable to trade due to an unexpected interruption. It can also provide you with additional benefits, such as:

• Online support for Disaster Recovery Planning
• A Critical Incident Service offering immediate assistance after a disruption, including arranging such things as alternative offices, replacement IT hardware and telephone redirection.
• A thorough analysis of your business risks to help you identify and, if possible, eliminate them or at least ensure you have adequate insurance to cover them.

The Benefits of a Broker

Not all insurance cover is the same, which is why having an expert often pays off when it comes to making a claim. Here are some examples of when our broking teams’ professional advice has saved our clients from potentially crippling losses:

Loss of Attraction

Our client owned a pub and the neighbouring business suffered an arson attack. The pub was not damaged. However, the scaffolding around the neighbour’s building rendered the pub almost invisible to passing trade, causing a major dip in profits. Fortunately – as a result of our risk review when he took out his policy – we had arranged for the inclusion of a ‘Loss of Attraction’ extension. This covers loss of profits, even when there is no damage to your building – physical damage is usually a pre-requisite for a business interruption policy to pay out.

Fire Damaged Factory

Another client faced an accidental fire which destroyed much of their factory. Normally, the insured indemnity period on a business interruption policy is one year. However, on reviewing the factory we had recommended an indemnity period of two years.  In the event, rebuilding the premises, repairing the equipment, replacing stock and regaining market share took most of the two-year period. Without our advice the client would have been seriously out-of-pocket.

James Groves, Commercial Assistant Manager comments,

“Business interruption insurance is a crucial element of any insurance programme. Speaking with an expert will help you to select the right cover for your business, ensuring that you have the most suitable indemnity period and the correct sums insured.”

For more information, get in touch with:

James Groves

0207 330 8707

jag@centor.co.uk

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