Keep Your Losses Low During Business Interruption

7/30/2022 (Permalink)

Reduce your losses during business interruption.

Anything from a broken pipe in an isolated location to flooding from a natural disaster can bring your commercial operations to a halt. In Salt Lake City, UT, this can mean significant losses and the need for a business interruption claim. The good news is that there are steps you can take to keep your insurance claim down, reduce your losses and get back to your normal routine.

When Flooding Threatens the Well-Being of Your Business

Every year flooding brings businesses to a halt when water heaters malfunction or extreme storms cause water to rise. Business interruption insurance coverage is crucial to surviving any type of major damage to your commercial property:

• Loss due to fire or an explosion
  
• Large water damage from natural catastrophes
  
• Equipment malfunctions and breakdowns
  
• Electrical failures and fires
  
• Crime or vandalism
  

Just about every business experiences some type of disruption because of one or more of these risks. An appropriate insurance policy is the best way to make sure your business doesn’t crumble because of lost revenue while you can’t continue with your normal daily routine.

Keep Your Insurance Claim Low

Preventative maintenance is one of the best ways to reduce risks and keep any loss or expense low. Talk to your insurance provider and local resources about the most common risks for your type of company and location. After determining the risks, estimate the cost of possible interruptions, be sure you thoroughly understand your coverage, create your plan for preventing hazardous scenarios and then put together your crisis response plan.

Reduce Losses When Disaster Strikes

In spite of your best planning, it is impossible to prevent all emergencies. When you do have to shut your doors because of damage, work quickly to resolve the issues. The faster you can recover, the lower you can keep your claim. Your insurance company may recommend a water damage cleanup and recovery agency. These professionals have a well-planned approach to bringing any ongoing damage to a halt, as well as an emergency response to prevent additional or secondary harm. Cleanup and repair professionals have the training, equipment and time necessary to get your property back into functional condition and ultimately return it to its “like new” condition.

Open Your Doors and Return to Business

Your crisis response plan is crucial during a disaster. The first part of this plan should cover how to keep employees safe, an evacuation procedure and the steps that employees should take during an emergency. It should outline how to maintain communication with your customers and partners. Other parts of this plan should include a chain of command and specific tasks and responsibilities that employees will carry out during and after the disaster. Create a scripted message, so that all employees can share reliable information that doesn’t conflict with other messages and cause confusion.

With the proper insurance coverage in place, the involvement of cleanup and recovery professionals, and an operational and communication plan ready to go, you can move forward with confidence that you are ready to face flooding and other disasters. You’ll minimize the risk of possible damage and limit the impact that emergency scenarios will cause.