COULD YOUR BUSINESS SURVIVE A DISASTER?

WOULD YOUR BUSINESS INTERRUPTION INSURANCE FULLY RESTORE YOUR BUSINESS

In our experience, while most businesses have Business Insurance, most of them have serious cover shortcomings.

It may surprise you that over 40% of companies who suffer a severe fire loss never trade again, so how well prepared is your business to survive a similar disaster?

All businesses ability to trade, particularly those whose locality is key for turnover generation, those who have stock in trade or those who manufacture or supply products, will be significantly affected by a catastrophic loss, like a fire for example.

Correctly structured Business Interruption insurance cover is absolutely essential to ensure the future survival of your business. The question is, are you confident your business could survive a catastrophe?

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YOU SHOULD ASK YOURSELF THE FOLLOWING QUESTIONS:

01 IS YOUR SUM INSURED ADEQUATE?

Do not assess your cover on your current level of trading, but project forward for at least two years to allow for any future anticipated business expansion.

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02 HOW ADEQUATE IS THE LENGTH OF YOUR INDEMNITY PERIOD?

Most businesses purchase a 12-month indemnity period, but would this be adequate to enable the business to successfully continue to trade at the same level as before the loss?

Most businesses tend to be optimistic about the length of time it would take them to recover from a disaster.

You need to consider :

How long it would take to rebuild your premises?

How long will it take to replace your essential machinery?

Will you lose your customers to your competitors if you cannot supply them?

How long will it take for them to reuse you once you have recommenced trading?

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03 HOW DEPENDENT ARE YOU UPON YOUR MAJOR CUSTOMERS OR SUPPLIERS?

What if your primary supplier had a severe fire and could no longer supply you? Could you source from elsewhere, but if so, would this be at an additional cost? What if your largest customer suffered a significant fire and confirmed they no longer required your goods or services?

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04 DO YOU HAVE A WORKABLE AND UP TO DATE DISASTER RECOVERY PLAN IN PLACE?

Another surprising fact is that within 18 months of suffering a significant disruption, 90% of businesses without a plan in place no longer exist.

Ensure you have a contingency plan in place to enable you to continue running the business during and in the aftermath of the incident.

Business Interruption insurance can be complex, but your Insurance Broker will assist you to ensure that you have the correct coverage basis in place.

You may then be one of the fortunate 60% who could survive a severe fire!

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NOT SURE IF YOUR BUSINESS IS ADEQUATELY COVERED?

At AIB Cape we have over 40 years of experience in partnering with clients in surviving disasters and getting their claims paid out satisfactorily.

Our core offering is access to great people. Knowledgeable insurance people, who really care about understanding your needs and who consistently deliver on these needs.

Get in touch with us for personal and expert insurance advice.

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AIB Cape

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