Our clients were pleased to learn how our dramatically different approach uncovered a “Risk Landmine” that could’ve destroyed the business they had been building for years.
One example of a frequently overlooked landmine is failing to factor the cost of having someone else make your product or provide your service while your operations are suspended due to a Business Interruption claim.
Did you know that many businesses that have Business Interruption insurance will close their doors and never recover in the event of a loss? That’s because they didn’t take into account one very likely loss . . . the loss of their customer base.
“But wait, they say, doesn’t my policy cover my continuing payroll and lost profit after a loss?”
Yes, it will . . . but your customers won’t wait several months to a year for you to rebuild, re-tool, and restart production. They will find other suppliers to fulfill their needs. When you open your doors again, they may not return, and instead remain loyal to the new suppliers.
In setting your policy limits have you considered the potential loss of your customers should they go elsewhere and never return? Do you have enough limits to pay someone else to make products, to your specifications and labeling, to satisfy your customers while you are down? Have you entered into reciprocal agreements with friendly competitors to utilize their excess capacity, and for you to use yours on their behalf?
Even if you have Business Income insurance; if you close your doors for an extended period and have no one to make your product or perform your services, the customers you lose are unlikely to come back when you reopen. A huge plant and overhead, with too few customers, is destined to fail.
This is just one example of how our dramatically different approach can help you uncover “Risk Landmines” and better protect your business!
