Business Interruption Insurance
Many people who don’t understand the importance of Business Interruption Insurance see this cover as a considered purchase or luxury insurance. This couldn’t be further from the truth.
At Real Automotive, we consider business interruption to be a fundamental part of any motor trade insurance programme, of equal importance to your contents, liability & road risks insurance.
Consider the following :-
You sustain a considerable amount of material damage at your premises, your material damage insurance (that covers such things as your machinery and plant, hand tools etc) will reinstate the assets you have lost.
However, have you lost a material item that your business is reliant on, whether this a relatively large asset such as the building itself in a fire or this could be a piece of machinery such as your gas analyser, preventing your MOT testing activities.
The issue is how is this going to affect your business, it could have serious consequences.
It is not only the interim period between the time of the loss & the reinstatement of your material item but more specifically the loss of income as a result of the loss. It could be several months & in some circumstances years for a business to fully recover, for example are your customers going to wait until you begin trading normally again!
The answer is they are going to use an alternative provider and they may decide to continue using the alternative provider in future meaning there is a direct loss of income as a result of you as a business being unable to trade following the loss. Consider any contracts you may have with local companies, if you can’t service their vehicles at your premises you can almost certainly guarantee that your competitors can – large contracts can prove very expensive if lost.
If you value your business, staff & customers, business interruption insurance is the best way to safeguard it’s future following a material loss.
Don’t remove this cover when times get tough, it will be a lot tougher if you have a loss and no business interruption insurance is in place.
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