Business Interruption Insurance

The majority of CFO's we surveyed are not confident they carry an accurate limit of business interruption insurance. It is important to not have too little or too much business interruption insurance. What does this mean? In simple terms, if the limit is too high, your company is paying a higher premium then required. Conversely, if under-insured the company will have to cash-flow any shortfalls or a potential co-insurance penalty. All of these scenarios are completely avoidable with the right advice.

Business interruption risks

After all, you have built a strong and profitable business over the years and have a solid reputation with your colleagues and customers. Imagine yourself receiving a call on Sunday afternoon that your plant has burned to the ground and you rush to see a pile of rubble where just a day ago there was a modern busy manufacturing plant. This may seem drastic, but in today's world, there are many risks that can render a business inoperable.

Business interruption insurance evaluation

Reliance Insurance can help you complete an investigation and assessment of the vulnerable areas your commercial enterprise may be exposed to if a catastrophic event happened to your business. Business Interruption insurance will cover continuing expenses as well as lost profits. We will help identify expenses and determine adequate coverage for ongoing payables:

  • Rents or mortgage payments
  • Salaries, wages, and benefits
  • Power
  • Light, heat
  • Professional fees
  • Interest on loans to the bank
  • Taxes
  • Insurance

And evaluate lost operations and revenue streams :

  • Revenue interruption
  • Fulfillment of current orders
  • Brand damage
  • Loss of customers
  • Ability to rebuild or restart the business
  • Re-staffing and training

Be prepared for a disaster

Reliance Insurance will work with you to establish the proper type and limits of business interruption insurance to get you through this period of emotional and financial stress. But more importantly, we can work with you to set up a program that will help you plan in advance on how to deal with these problems so that if the unexpected happens you will have a starting point to get you on the road to recovery.

Reliance Insurance will work with you to establish the proper type and limits of business interruption insurance to get you through this period of emotional and financial stress. But more importantly, we can work with you to set up a program that will help you plan in advance on how to deal with these problems so that if the unexpected happens you will have a starting point to get you on the road to recovery.

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