Service Business Tailored Coverages
Businesses and other entities face many exposures to loss during their day to day operations. Service businesses have some unique circumstances which require good risk management and sound insurance treatment.
Systems Breakdown Insurance
Many service businesses today are extremely dependent on their business technology - telephones, fax machines, computers and computer networks, and the internet. They also depend on other businesses' technology: the utility company, phone company and internet service provider.
Should any of these technologies fail due to a sudden and accidental accident, what would you do?
If you have Systems Breakdown (or similar) insurance, you'll have few worries. This important coverage agrees to repair or replace business equipment and systems should you have a claim. Included in coverage are your HVAC systems, telephone systems, fax systems, and other business and building equipment. Similar coverage is afforded computer, local and wide area network, and internet access systems and equipment.
Further, you may also be protected if an off-premises systems service provider (such as a utility company) suffers an accident and you lose service. Business interruption coverage is also provided.
In this highly technological business world, do you have the right protection against loss? Give us a call at 607-754-1411 and we'll work with you to find out.
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 three to four months. When that's complete, it may take another month to rebuild your technology backbone and install your network systems. In the meantime, your clients are doing business elsewhere. Your operating cash comes from service revenue. No clients, 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 office 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.
Like to talk to us about these and other tailored coverages for service businesses? 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.