There have been all sorts of reports of damage to properties and fires in outside storage areas of late. The old tale of batteries causing fires near the storage of waste paper awaiting travel to recycling dumps is another favourite. For someone with a business located on a trading estate near one of these facilities, it can be very difficult to continue trading when there is a long delay in reaching the premises caused through a fire, especially a serious one that hits the news headlines.
This could be when business interruption insurance cover comes into play. If someone cannot carry out their everyday legitimate business activities at their warehouse, office or other property because of a fire at another nearby promises that causes damage to your premises or equipment then the interruption insurance would be expected to pay ot . In the case of a shortfall in pre tax profits resulting from that event and any incfeased costs to run the business as a result of the fire – i.e. additional accountants fees.
When insuring for contents only, valuing the stock correctly is essential – insure stock against cost price, not sales price. If you eery have additional stock prior to festivals or holidays such as Christmas, then these additional assets need to be covered by adequate premiums.