Insurance
Business Income (Business Interruption) Coverage- Do you really need it?
by Martha Marton

Running a business is tough and we all look for ways to cut expenses, but not buying or deleting your Business Interruption Insurance Coverage may not be the best way to save money in the long run.

What would happen if your business had a fire? What if your repairs took longer than a few days and you were not able to reopen for a few weeks, or even months? What about the loss of income as a result of that fire?

If it takes some time to make the repairs, your customers will likely go elsewhere and they may take some time to realize that you are back in business. The profits may not return to "pre-fire" levels until much later, 6 months after the fire or even longer.

The losses would be even more if the loss occurred during a peak sales periodsuch as right before Christmas when the business generates most of the year's revenue. A small investment in Business Interruption Insurance will help to cover that difference so that your business can

continue as before.

Some tips: Keep good financial records. You will need them to prove the amount of any business income loss.

A professionally prepared annual audit is a good idea.

If you store a duplicate set of business records offsite they will be available should you need them to substantiate a loss.

Finally, develop a plan of action of how to best service your customers immediately after the loss to reduce the risk of losing your customer base.

For more information on how to protect your business income, contact Martha Marton at Tupling Insurance Brokers Limited. Direct Line 705.458.8111 marthamarton@tuplinginsurance. com

Tupling Insurance Brokers, 1070 Innisfil Beach Road, Innisfil, ON L9S 4T9 (705) 431-5585

Martha Marton, CAIB, CRM, Registered Insurance Broker