“Every Business Needs It! – Do You Sell It?” Technical Training Series
In a capitalist economy, a general definition of business is “an enterprise or firm involved in the trade of goods and/or services to consumers in exchange of other goods, services or money at a profit.” Even a not-for-profit organization won’t able to operate in the long run if it spends more money than it receives. If you are a new producer who is looking for a product that every business needs, the kind that competitors miss or do not understand, then you may want to consider business interruption or business income insurance. All business owners and insurance producers know the importance of protecting property and liability risks. But in some cases, they tend to overlook protecting the most important asset of an enterprise—the profit or earnings. The following aspects are typically covered under a business interruption policy:
- Profits that would have been earned had a loss not occurred
- Fixed costs and operating expenses that are still being incurred after a loss
- Temporary location expenses to keep the business operating after a loss
- Extra expenses and reimbursement for reasonable expenses to stay operational
- Civil authority ingress or when there is a government mandated shutdown
- Check, study, and understand the coverage that your main commercial carriers offer. Carriers often have training sessions on specialized coverage policies that highlight particular risks. Your underwriter and loss control team can often help.
- Identify and study resources related to business interruption insurance. Nowadays, there are various online references which may be helpful to interested producers.
- Ask key questions, gather relevant facts, and listen to the customers. “What if” questions about the prospect’s key suppliers often stress the importance of business income insurance.