Business interruption insurance – 5 common mistakes

Any interruption to your company’s normal operations — even one that is brief — can be costly. Thankfully, these setbacks can be easily mitigated with comprehensive business interruption insurance. However, even if your company has a robust policy, it is only effective if your sum insured and indemnity period are adequate. To help ensure your claim is successful, avoid these five common mistakes that other companies have made when submitting their claims:

1. Underinsurance – Review your sum insured to make sure that it is adequate to cover any growth within the business over the indemnity period.

2. Indemnity period – This is the period the insurers with provide you with cover in the event of a claim. Therefore consider how long it would actually take to rebuild your premises, to source new machinery stock and how long it would actually take to return to a normal trading pattern.

3.  Not reading your policy and schedule – It is important that you read your policy to understand what types of damage caused by an interruption are covered, the  as well as the size of your excess. Also, read your policy so that you know how many days you have to submit your claim.

4. Not properly documenting the damage – Before you even begin to clean up, you should take photographs of the damage from multiple angles to give as clear of a report as possible. In addition, it is important to keep any damaged items as evidence until your claim has been processed.

5. Not providing enough information – Be as thorough as possible in your claim, and, if you are able, provide a detailed outline of how the incident occurred.

The most important piece of guidance when submitting a claim is to contact your A-Plan Commercial branch at any time to discuss your policy and effective business interruption strategies.