Last week, the Puget Sound area had its second straight year of significant snowfall. For us, it’s between 8-12 inches and that’s enough to create suspension of operations for many businesses.
I received a phone call from a client in the hospitality industry asking if snow was enough to make a claim for loss of business income. I had to explain that for any loss of income claim, there needed to be direct damage loss from a covered peril, like a fire.
It was a good question to ask. It also brings to light the fact that insurance isn’t the only answer to calamities that can negatively impact business. While properly programmed insurance is a huge help when property has been damaged, there are many perils to be concerned about and prepared for.
If you own or are a key business leader, here are a few obstacles that are very real and can damage a business:
Suspension of operations due to weather; loss of power and connectivity; bad behavior by individuals causing reputation damage; loss of primary client or supplier; loss of key person, including the owner. Too often, business leaders focus on only growth and forget what impact to growth a suspension or reduction in operations has.
While some may be eligible for insurance help, it’s best to create a plan to prevent and recover. Not doing so – in advance – can kill a business, even if insurance is in place.
Your assignment is to make prevention and disaster recovery a part of your overall strategy. That way, you and your business are prepared to thrive in any situation.
P.S. If you think this only applies to a business, you’re sadly mistaken. The same is true for your personal life. Consider yourself the CEO of your family, however that may be structured. Take on the same assignment!
Quote of the Day:
“What lies behind you and what lies in front of you pales in comparison to what lies within you.”
~ Ralph Waldo Emerson
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