Bad things don’t just happen to other people. This is worth keeping top of mind for every business owner and manager.
Various threats remain common to nearly every business and can threaten a company’s sustainability and someone’s own livelihood. Devastating fire, floods, water seepage and plumbing breakdowns can cause severe damage to stores, factories, equipment and products.
According to Intact Insurance, more than two-thirds of companies that do not have business interruption insurance go out of business if they have a major loss. A preventative approach can save your business thousands of dollars.
“Businesses are not immune to risk and if they must cease operations, even for a short time, the result can be serious financial trouble or even bankruptcy,” explains Nick Cinotti, director of loss prevention at Intact Insurance.
Theft is another common risk that can have serious impact on business operations. If stock is stolen, a business may not be able to fulfill obligations to its customers, suppliers or creditors.
Similarly, protection against cyber risks like computer hacking and data theft is also becoming essential. Business interruption insurance can protect against any issues that could halt production.
“Too many business owners underestimate the importance of keeping their buildings and equipment properly maintained to avoid problems and insurance claims,” says Cinotti. “Making sure electrical or mechanical systems run safely and efficiently with regular maintenance can make a large difference should you need to file a claim. “
Between large and small businesses, the scale of risk determines the price of coverage, but prevention and comprehensive coverage remain key factors in protecting your business. Intact Insurance recommends you talk to your insurance broker about coverage and costs.
Source – www.newscanada.com