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Who Needs Money?

Closed_sign_2 June 22, 2007 brought storms throughout central Iowa.  If you picked up any local newspaper, damage from tornado, lightning, fire, windstorm, and even flooding were reported. 

Natural occurrences such as these take place frequently. The problem is - we can’t predict the severity of the loss. The real question is, how long will it take for the repairs and when will you be back in business making money?

Imagine that your office building sustains the damage and you have no place to operate your business.  The building is boarded up and the city is going to have to determine whether you need to tear it down or rebuild it.  The insurance company is trying to calculate the dollar amount of your loss to see how much is going to be paid out.  But you need money now!

One very common but overlooked (or underestimated) insurance coverage is business interruption insurance.  This can be the most important form of indirect damage coverage you obtain for your business.  There are several forms available:

  • Business Interruption
  • Extra Expense
  • Combined business interruption and extra expense
  • Consequential Damage

How do you determine what coverage is needed? There are several things to consider. Download business_income_coveragesample.pdf

Don’t scrimp on your business insurance. Mother Nature doesn’t always play nice.

davepatten photo from Flickr


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I agree with you that business interruption insurance is important. Having an experienced agent that can inform you about what is covered or not covered is key. Reading the policy in advance to understand the coverage is also a must.


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