Retail / Wholesale Tailored Coverages
Businesses and other entities face many exposures to loss during their day to day operations. Retailers and wholesalers have some unique circumstances which require good risk management and sound insurance treatment.
Loss of Business Income and Extra Expense
An often under-emphasized and misunderstood coverage for businesses is Loss of Business Income and Extra Expense(BI/EE). Often referred to as business interruption insurance, BI/EE is as important as building and contents insurance. Sometimes even more important.
Consider what would happen if your business was destroyed by fire. Your building is gone, but will be rebuilt in four months. When that's complete, it will take another month to receive and fill your shelves again with stock. In the meantime, your customers are shopping elsewhere. Your operating cash comes from sales revenue. No customers, no operating income! What do you do?
You rely on BI/EE coverage. It agrees to reimburse you your lost operating income, including profit, while you are rebuilding your business from the ashes. Continuing expenses are taken care of such as payroll, line of credit payments, taxes, ongoing utilities, and other continuing business financial obligations. Extra expenses are reimbursed (if they help reduce the loss of business). These may include temporary store or warehouse rental expense, special advertising, and extra help.
If you don't have sufficient working capital and retained earnings, making it through a period of business interruption and restoration without this insurance is very difficult. Call us at 607-754-1411 to discuss this important coverage.
Peak Season Insurance
You've just made it through another holiday season! Sales were great, lots of people shopped, you sold out your holiday inventory, the shelves are bare. Congratulations! But did you have enough contents coverage for your peak inventory level through the holidays?
You did if you have Peak Season Insurance. This coverage agrees to automatically increase your contents amount of insurance by as much as 25% (even 50% with some policies) should you suffer a loss during a peak season. If your contents limit on your policy is $100,000 and you have this important coverage provision, your automatically have up to $125,000 for peak season losses.
One important caveat - a peak season coverage condition requires that your contents limit ($100,000 in the example) be equal to your 12 month average inventory (your stock plus fixed assets: counters, shelves, desks, business machines, etc.). As long as you satisfy this condition, you have this free, automatic coverage. Call us at 607-754-1411 and we'll work with you to see if you need this protection and if you satisfy the condition.
Like to talk to us about these and other tailored coverages for retailers and wholesalers? Just give us a call at The Partners Business Insurance Center at 607-754-1411. Or e-mail us at info@thepartners.com
These coverage descriptions are general in nature and are not to be confused with specific coverage grants, conditions and exclusions made in specific insurance policies. Please review your policies for specific coverage details.