We may not like to think about but there is always a chance that a catastrophic event like fire, flood or theft may happen at our business. When an event like this occurs there is a chance that you property may be damage, you may lose stock and in extreme cases you may not be able to trade or work from the premises for months on end. In this scenario would your business be able to survive – would you have the capital to continue trading should the insurance company not payout what you think you need.
In addition to this you are likely to be put under a lot of stress by the event and the more work you can offload the better – most businesses do not even realise that they will have to deal with their side of the claim themselves – the insurance company will not do it for you. You have to ask yourself whether you will have the knowledge and the time to take all of this on whilst still trying to rebuild your business and deal with all the issues that have arisen since the disaster.
Having good insurance is obviously the first port of call to help a business through these tough times – business interruption insurance being the best way to deal with these sorts of catastrophic events. Business interruption insurance will also cover the loss of profit following such a disaster.
One of the best ways to make sure that you get the best possible payout form your insurers is by using a claims management company. They will provide you with a loss assessor who will deal with your case.
A loss assessor takes on a similar role to that of a loss adjuster – the only main difference being that the loss adjuster will be working for and in the interest of the insurance company – whereas the loss assessor will be working for you. They will bring all of their specialist knowledge with to ensure that you are represented correctly in the claim. Loss assessors will liaise with the insurance company; deal with all of the paperwork on generally balance out the fight for you.
One of the biggest mistakes that businesses make is that they assume that the insurance company will pay the necessary amount to get the business back on track and compensate you for all lose earnings that have occurred directly as a result of the disaster. Whilst the insurance company is bound by law to give you a fair payout it is often less than you would expect – which can have a disastrous effect on smaller companies, often leaving them in financial difficulty that can be tough to recover from.
Give your business the best possible chance of survival – know about the options before disaster strikes.