Business was booming. I mean literally, BOOMING! My client was opening his third car audio store. They had recently purchased an additional building for $400,000 and stocked it with almost $600,000 in inventory. They had been fortunate enough to hire just the right type of friendly and skilled “techies” to sell and install the products they carried. The future looked bright for this new location.
Monday morning my client called. By the sound of his voice I knew something was wrong. He explained that the store had burned to the ground overnight. Thankfully no one was hurt in the fire, but there was almost nothing left of the building and the inventory.
The first question my client asked was, “Are we covered?” I pulled a copy of the policy and we talked about the limits on the building and the inventory. He sighed in relief.
The second question caught me off guard. “Do I need to call an attorney?” he asked. He went on to explain that he was worried about being shorted by the insurance company on the settlement.
We have all heard “nightmare” stories about an insurance company refusing to pay a claim. That’s why it’s a good idea to make sure you get your insurance from a trusted company, and not choose a policy based just on price. But that’s a blog for another day.
I explained that he was insured with a company rated “A+” by Standard & Poor’s, and that he had excellent coverage. The policy included coverage for the Demolition and Cleanup. The policy had Replacement Cost Coverage for the building and inventory. It also covered the loss of Business Income while the store was being rebuilt and restocked. These payments allowed him to still make the mortgage payments on the building and keep his essential employees. Without business income coverage, he risked losing his key employees who needed a paycheck. Also covered was the Extra Expense to advertise the Grand Re-Opening.
The claim totaled more than 1.1 million in insurance payments, and my client did not need an attorney. Thanks to his insurance, it wasn’t long until business was booming at this location again!
Identifying the threats that face your business is the first step in setting up the right insurance. Call Beehive to set up a free risk survey for your company.
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