Don’t underestimate the time it takes to recover from a loss
One of the other issues that we have for SMEs is actually how long it takes to recover following a loss, maybe a fire or flood or something similar to that. This is actually referred to as business interruption insurance.
Now some SMEs don’t even take this actual insurance out. So there’s a couple of things here from an Ageas perspective.
It’s really important to protect your property against the normal causes of loss, sort of fire and storm, flood etc. However, if your business can’t trade because of one of those losses, you will then have a situation where you’re losing income and you need to protect that.
So one of the most important features that you have to think about there is not just adequately protecting that sum insured, which is where a really good broker will come in to help you, but also how long it will take you to recover and that’s often underestimated.
So if you have a major fire, either at your premises or potentially somewhere else, which will deny you access to yours, you need to work out exactly how long it would take to be able to get back in business again, and that’s what’s called an indemnity period. And again, a really good broker will help you get to the right sum there and also the right period of time.
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