Simple Steps in Obtaining Business Continuity Insurance
Posted on | October 12, 2011 | No Comments
The continuity of a business is the activity performed by a company or organization to ensure that its vital business functions will be available to clients, suppliers, and other entities that need access to those functions after a disaster. Because of the wide geographical area of the United States that make it prone to natural disasters, many organizations would obtain business interruption insurance so they would have available funds for carrying out their business continuity plans.
The business interruption insurance or also known as business continuity insurance is a type of insurance that covers the organization’s loss of earnings as a result of damage or loss of property resulting from a disaster. Depending on the insurance plan provided by an insurance company, the insurance would reimburse the organization for expenses in salaries for employees, leases or rents for facilities or equipment, utility bills, and other ongoing expenses that are incurred by the company during the period of interruption for its operations.
The main advantages of having a business continuity insurance plan is that the organization would have available funds to spend for its various expenses during the period of interruption when it ceases operations and not earn any earnings. That type of insurance is availed by various companies regardless of the size and scope of their activities and operations.
If you own a small or medium-sized business and you want to obtain a business continuity insurance, you could follow the simple steps in applying for the insurance:
- It is preferable in obtaining business interruption insurance from an insurance company that specializes in the line of business or industry of your company. There are many specialty insurance companies in the U.S., that specialize in industry-specific insurance policies for particular line of industries.
- When you have selected an insurance company, obtain geographical information about the location of your business, important information about your company’s physical facilities, specific information about your line of business, copies of your business plans, taxes and real estate records, financial statements, records for employee payroll, and other important information about your business. The information will be used by the insurance agent to assess your business and would help determine the price of the policy.
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