Your business property can range from office contents and sales inventory to buildings and outdoor structures. All of these items are subject to damage caused by fire, wind, explosions and burglary. But since an exposure to loss is not always so apparent, policies are often available to cover “all risks of direct physical loss.” The benefit of this approach is that a cause of loss is covered unless it is specifically excluded. These exclusions include flood, earthquake and machinery breakdown. Separate policies for flood and earthquake are available either by endorsement to your policy or from a specialty insurer. Machinery breakdown exposures exist in almost any business, and affordable coverage is widely available from standard carriers.
While it’s easy to visualize the physical impact that a fire, hurricane or other disaster can have on your business, what happens after that initial impact? How quickly can your business reopen after disaster? What expenses will continue while your property is being repaired or rebuilt? Will you be able to pay and retain your valued employees during that period? Business Income and Extra Expense Insurance is available for these types of losses that can persist long after the fire is out. Coverage is also available in the event that a major supplier has their operations disrupted and leaves you unable to conduct business. The insurance professionals at Rose & Kiernan can help you determine your exposure to Business Income losses and find the appropriate solutions to help mitigate the financial impact.
Sometimes the largest exposures to loss are the ones that occur infrequently and yet have the ability to inflict damage across wide geographic areas. Climatologists predict greater hurricane and flood risk in the future. Even though your main operations may be located in a relatively quiet area of the country, your satellite operations such as warehouses and branch locations may face the real possibility of being impacted by these devastating events. A review of these exposures at each of your locations is something with which Rose & Kiernan can assist you. We maintain strong relationships with carriers and markets that have the ability to respond to these catastrophic exposures, including specific coverage for named storms.
While Property Insurance is designed to cover property at fixed locations, many businesses have exposures to loss of property that is either in transit or is otherwise mobile in nature. Ocean Marine insurance grew out of the need for merchants and their financial backers to insure goods against the hazards of long ocean voyages. Today this coverage extends to shipments by air as well as ship, and can extend from the time goods leave a foreign supplier until they reach your loading dock. And if you own boats or aircraft, hull coverage is available to insure your interests. Inland Marine, as the name implies, developed to cover losses to your mobile or unfixed property while on land. For a contractor, these exposures include tools and equipment as well as the materials that are being shipped to a job site. For a wholesaler, the risks could be goods on your trucks or in the custody of a common carrier while being delivered. Manufacturers sometimes ship large, high-valued items on infrequent schedules. And technology companies face exposure to loss of physically small but very expensive items while being shipped. Rose & Kiernan can work with you to identify these exposures and find appropriate risk management and insurance solutions.
In a global economy you rely on many suppliers and vendors to keep you supplied with physical goods or for actual outsourcing of operations. Disruption of your supply chain can present a real risk to your business – and when these vendors are in a different country, the risks can rise dramatically. While Ocean Cargo insurance can respond to some losses, and business income insurance to others, a Trade Disruption policy can cover exposures that are outside the scope of these policies. Port closures, strikes, political and civil unrest and trade embargoes can seriously disrupt your supply chain. Rose & Kiernan’s insurance professionals can help you identify these exposures and mitigate potential losses with appropriate risk management techniques and a Trade Disruption Insurance policy.
When a new structure is being built, or an existing structure is being renovated, Builders' Risk insurance can cover the risk of physical loss. Once a building is completed, Property Insurance can be purchased. As with Property Insurance, coverage is written to cover all risks with exclusions; flood and earthquake are generally available. Builders' Risk coverage has traditionally been viewed as an Inland Marine exposure as it involves unfixed exposures such as materials in transit, temporary structures such as forms and scaffolding and a constantly changing risk as construction progresses. While coverage is typically purchased by the general contractor for the benefit of all parties, there can be benefits to having the building or project owner purchase the coverage. Just as not all building projects are the same, not all policy forms are the same. Rose & Kiernan can help you decide on the correct coverage for your next project.