Studies show that 75 percent of businesses fail within three years of a natural disaster. One of your best options to make sure you’re not in this number is to create sound emergency preparedness plans. These plans need to include protection for when you must temporarily shut down your business.

Perils That Interrupt Business Operations

If criminals vandalize your business, you might need to repair your premises and install security instruments. If a hurricane hits your town, wind and water might damage your buildings and its contents, making your work site unsafe to conduct business. Cyber criminals could attack and compromise your company’s computer databases making it impossible to service customers. After these events happen, you might need to temporarily close your business take care of these issues, so you’ll lose business income. If you have an insurance policy that reimburses you for this loss, your business might be one of the 25 percent of businesses that comes back after a disaster.

Compensation for Loss of Income

The goal of business interruption insurance is to pay you for the income you’ll lose during the time it takes to repair or restore your business after a loss. This means that if a physical loss forces you to suspend your business activities, you’re insurer will reimburse you for the net business income you’ll be unable to earn during the suspension period. This amount includes profits, less taxes, you would have earned if you were able to continue operating as normal.

Restoration Period

You need to be clear about the limits of a business interruption policy. For example, the restoration period start and end dates are important. This is because your insurer will reimburse you for loss of income that corresponds to this period only. The restoration period starts at the onset of the loss and lasts through the time it takes to rebuild, repair or replace you’re property. As long as the loss occurred before you’re policy’s expiration date, you’re covered — even if your policy expires during the restoration period.

Restoration End Date Concern

Keep in mind, however, that the restoration period can’t drag on forever. Insurers and insured often disagree on the restoration period’s end date because a number of events can extend or delay this date. Your best bet is to talk with your insurer often and keep records, with pictures, of everything that relates to rebuilding your business.

Running a business may mean that you will eventually face commercial disputes and legal concerns. Whether you are looking at a court case when an ex-employee decides to try suing you after being fired or you are facing liability concerns associated with an accident, the coverage can help you get through the situation.

Selecting Legal Assistance

A key reason that commercial legal expenses insurance is useful to any company is the ability to pick out your own lawyer for the legal situation. The insurance policy allows you to tell the insurer who to hire for your legal needs rather than using the lawyer who is provided by your insurance provider.

The coverage provides the added benefit of allowing you to make decisions so that you have the best defense and team for your particular needs. Keep in mind that if you have a specific lawyer in mind for the case, you should inform your insurer as soon as possible to avoid any complications.

Paying for Legal Costs

Legal expenses can add up quickly. In some cases, the cost of hiring a lawyer and going to court will cost more than you can easily pay.

Commercial legal expenses coverage is designed to address that concern by providing protection against the legal costs that may arise. Businesses have a risk of facing lawsuits, regardless of the size of the company. Even if you have not done anything illegal or unethical, there are individuals who may try to take you to court. Having protection against the high-cost bills can make it easier to settle the situation.

Legal disputes are a realistic problem that any business might face. Having the coverage to handle those added expenses can make it easier to move forward. Contact us to speak to an agent for more information.

A commercial auto insurance policy is an important part of protecting your employees and your business in Dunmore, PA. While your policy will cover any listed company vehicles, it may or may not cover an employee’s car if he or she gets into an accident that occurs during work hours and relates to a company errand.

Listed Drivers

In some cases, insurers may offer coverage to an employee who is driving his or her own vehicle as long as he or she was listed on the policy. By protecting the individual as a driver on your company policy, it is more likely that your commercial plan will help pay for any damages or liability issues that may arise.

Listed drivers are usually covered as long as you are paying for the additional coverage.

Limitations on Coverage

Although coverage may be available, it is important to recognize the possible limitations on your plan that may prevent you from making a claim with your insurance provider.

Some insurers may not cover employees if they are in a personal vehicle at the time of the accident. Furthermore, your worker’s personal policy may not cover any accidents that occurred while he or she was running errands for the company.

Other situations may relate to the listed individuals. If your worker is not listed as a driver for your company, then it is possible that you will not have coverage for the situation.

Every plan is different, so it is important to realize that you may or may not be covered when your workers get into an accident while running errands for the company. Contact us to talk to an agent for more details about your options.