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Would a disaster, natural or man-made, damage your business?

 

Business interruption insurance is important for any business. If your business suffers any type of disaster, whether embezzlement by employees, destruction of your physical building by a tornado or flood, or hacking by cyber criminals, it could be shut down. Suddenly, you have no revenue, no inventory, no ability to fulfill your ongoing obligation or ways in which to maintain and retain your customers.

But as with all types of insurance products, you have to understand both the risks you face and the type of policy you need to cover those risks. The saddest conversations involving insurance occur when an individual or business believes they are covered, only to find that the particular type of harm they suffered is not covered by any of the existing policies.

 

This can result in litigation, as the policyholder and the insurance company trade claims and counterclaims over the true meaning of the policy. For instance, much of the risk you face from cyber crimes, such as hacking your servers, identity theft to steal cash or assets or the theft of your customers personal data are uncovered by your general liability policy.

This means your business could be exposed to a risk that could well destroy your business and you may be left with few options besides filing for bankruptcy. You want to be certain your business interruption insurance actually provides the protection you need. And this is why it is essential to review your existing policies and determine where the gaps in your coverage may exist.

Review of these gaps with your attorney may be necessary as your attorney can clarify the specific terms of your policies and suggest the types of coverage that may be needed.

When it comes to insurance, the key is clarity. You want to be certain the terms and definition in the contract match your expectations and working with an experienced insurance attorney can ensure you are not surprised when it comes time to make a claim.

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