Planning for Business Interruptions

Business interruption is a risk common to all businesses, large and small. Yet, according to the research firm Gartner, fewer than 30% of the Fortune 2000 companies actually have a full interruption plan and appropriate coverages in place beyond their IT environments.

Do You Know the Potential Financial Impact of a Major Interruption?

To help you account for expenses that may continue even though your business has come to a halt, use the Business Interruption and Extra Expenses Worksheet for your planning purposes. This worksheet will help you plan coverages for:

• Fixed charges and other expenses.
• Ordinary payroll and compensation.
• Expenses incurred for overhead and facilities.

Tips to Consider When Completing the Worksheet

1. Review your annual financial records with your accountant to determine your annual gross profit.
2. Consider the growth of your business from the renewal date of your insurance policy.
3. Assume that operations will be shut down for at least a year after an earthquake.
4. Review your Business Interruption & Extra Expense insurance every year; otherwise you significantly increase the risk of becoming under-insured.

Want More Information About the Business Interruption & Extra Expense Worksheet?

Contact us to find out about our extensive list of extra coverages and to locate an agent or broker near you.