DON’T SKIMP ON INSURANCE
Adequate property and casualty insurance is an
essential investment for every business. This means full
replacement value insurance on your property with
separate, itemized schedules on special items. In our
case, the “basic” replacement value insurance on
our building and contents was supplemented by the
following additional coverages (among others):
• Expenses attributable to new building code
• Lock and key replacement;
• Personal effects and personal property;
• Tools and equipment;
• Trees, shrubs, plants and lawns;
• Valuable papers and records.
These optional riders can come in handy—
increasing the total amount of protection well
beyond the policy’s basic coverage.
But a business is more than what it owns.
It’s also what it does. That’s why two additional types of
insurance coverage—business interruption and loss of
income—can help you stay a;oat if disaster strikes. Both
types of protection are even more important for PEI
members than for us as the association’s headquarters.
If, for example, your trucks or equipment were destroyed,
your ability to earn a livelihood would be threatened.
Business interruption and loss-of-income insurance can
provide at least part of the answer.
Remember, too, that your business changes every
year. In;ation and acquisitions can increase the value
of your property and make once-adequate coverage
insuf;cient. To be certain that your coverage keeps pace
with your assets, you’ll want your insurance agent to do
regular—at least annual—reevaluations of the amount
of coverage you have and the terms of your policy.
Speaking of your insurance agent, a good one is worth
his or her weight in gold. Make sure you contract with
an agent who is quali;ed, conscientious, knowledgeable
and caring. PEI’s insurance agent was on the scene
30 minutes after we called him. And his of;ce has
continued its excellent service in the weeks since.
Once disaster strikes, you’ll also want to build a strong
relationship with the insurance adjuster who is assigned
to your case. His or her cooperation can make a bad
situation much, much better. In our case, we had such
a good relationship with our adjuster that checks started
coming in before we had even begun submitting claims.
FIRST THINGS FIRST
Give the most attention to your most important
assets. As a member-focused association, our stock-in-trade is largely data and communications. So, we had
already ensured that we were well set on that front.
All of our important ;les were backed up and housed
offsite and/or in the cloud. That includes membership
“… a business is more than what it
owns. It’s also what it does.”