Fire On the Boardwalk – Why business interruption coverage is a crucial element of a comprehensive risk management plan
Fire On the Boardwalk- Why business interruption coverage is a crucial element of a comprehensive risk management plan
It seemed inconceivable New Jersey’s Seaside Heights would be one minute from normal for a second time in two years. Yet, that is exactly what happened when wind-blown fire destroyed six blocks of boardwalk and nearly 50 businesses.
Since fire is covered by a standard commercial insurance policy, businesses with adequate coverage will be compensated for their structures and contents. In some recent news reports, there has been the unsettling revelation some business owners did not have any insurance coverage at all, perhaps assuming “disaster only strikes once”. It is unknown, though, how many ruined businesses have critical business interruption coverage to tide them over until rebuilding efforts have been completed. And even for those with business interruption coverage, the amount may not be adequate.
Unscheduled events like this fire demonstrate why business interruption coverage is a crucial element of a comprehensive risk management plan. The “typical” business interruption coverage offered is not enough to cover many exposures. It requires a broker with expertise to negotiate the coverage to support individual business’ exposures.
At KMRD Partners, we realize expertise in assessing and transferring risk through proper insurance coverage is only part of what it takes to properly service our insureds. We also support them with experienced, knowledgeable claims management professionals who act as their advocates following one minute from normal.
KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®
We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.
To review your organization’s insurance coverage please contact your KMRD Partners relationship manager or e-mail us at contactus@kmrdpartners.com before one minute from normal strikes.
