The lifeblood of any business is cash flow. Do you have the right plan — and insurance coverage — in place to help you deal with these three business interruption scenarios? Each have the potential to wipe out cash flow — and are some of the most common reasons why businesses fail.
- A disaster. Once the cash stops flowing after a disaster, a business can be in real trouble. That’s where business interruption insurance comes in. Business interruption insurance compensates your business for lost income in the event of a disaster that is covered under your property insurance policy, such as a fire.
- The loss of a key employee. The death of a key employee can sink a business. Revenue can plummet as a company scrambles to adjust. Key person insurance can help a business weather the loss of a founder, CEO or other vital employee..
- A big mistake. Everyone (and every business) makes mistakes. Unfortunately, big mistakes can gobble up huge sums of cash and put a company out of business. The good news? There are a variety of risk management tools for companies of all types and sizes. Product liability insurance, for example. can be an important risk management tool for manufacturing companies. Errors and omission coverage can be a lifesaver to service companies that can face negligence claims. General liability insurance can help manage a variety of other types of risks. Questions? We can help you determine which types of policies can help protect you and your company.