 If you depend upon a customer, supplier or other “contributor” for a large portion of your business income, then you should consider examining this important coverage. Dependent Properties Loss of Income coverage is used to insure against your drop-off in revenue and extra expenses when loss or damage strikes not your business – but rather strikes something or someone that is a “contributor” to your business. Some Examples of contributors to your business are: Manufacturers, Suppliers, Shippers, Subcontractors; inter-dependent locations; and lead stores for insureds located in malls or office complexes. This coverage should also be considered for any off-site event which is relied upon by you for a major portion of an your annual income (for example trade shows, exhibitions). In addition, Critical Machinery that you use in your process can sometimes pose a special risk as well. Some examples of claims: Your primary supplier sustains damage preventing them from supplying you with a critical product or component and you are unable to stay fully operational. Your resulting loss of income (from the shutdown) would be covered. A customer that represents 75% of your annual income loses most of their plant in a storm and must split their Manufacturing between their three other plants located in other states while it takes them over a year to rebuild. Your resulting loss of income (from the loss of a major customer for over a year) would be covered. When you are highly dependent upon someone or something in your business process, you need to contact your insurance agent and review this all important coverage. Comments Your comment will be posted after it is approved. Leave a Reply | Allison InsurancePeriodically staff members will write and post articles covering our products, insurance news, and how you the consumer can reduce and manage daily risks. ArchivesApril 2012 CategoriesAll |
RSS Feed