One of the most difficult areas of insurance planning involves business interruption insurance. Decisions involving the insurance of property are much easier, as determining insurance to value is more objective.
When planning for business continuity during a disaster, I’m often met with the deer in the headlights look on the part of the client when we begin the review of the insurance amounts necessary to protect the business.
Couple that with the reflexive aversion to spending any more money on insurance than a company has to, and this area gets short shrift, …
Best advice is first things first. Before setting an insurance amount, have management do a little brainstorming around “What If.”
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