Business Interruption Insurance > Contingencies
In this series of posts, we explored the basics of Business Interruption Insurance, including calculating how much coverage your business needs. While the policy provides protection in the event of a disaster, there are some other key features to include in your policy to ensure you’re adequately covered.
Restoration period.
This insurance policy is not intended to provide income for the rest of your life. Depending on how long you want the payment period to last, your premium will reflect this. If you’re working with a tight budget, it’s still critical to pay for a policy that will replace your lost income for a realistic amount of time while you rebuild your business or wait to reopen.
Product recall contingency.
Product recalls are a real risk if you make, grow, or package a product. General liability policies will cover you if your customers incur bodily injury or property damage, but the real exposure is more widespread. Most product recalls will cost you a minimum of $1,000,000, and it can run into the hundreds of millions for larger companies. Business interruption coverage can be written to cover recall expenses, the cost to rehabilitate your brand, and provide a response to adverse publicity, says Above the Canopy.
Government interference.
In the event your city wants to expand roads, close down shopping centers temporarily, or the like, your business might be significantly affected. This contingency would cover such losses from governmental actions.
About FGIB
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for financial entities, in addition to providing crime insurance and general business insurance products to a number of firms across the United States. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.