As Hurricane Henri meets areas of the Northeast today as a tropical storm, it’s paramount to review your emergency preparedness plan in the event of any business interruption from a natural disaster. Are you prepared?
Natural disasters such as hurricanes, floods, tornadoes, earthquakes, snowstorms or fires, can be devasting to businesses. If you don’t have the proper business continuity plan or a disaster preparedness strategy, the fallout can be even more detrimental.
Here are five business interruption tips that will help ensure your dealership is positioned for a strong recovery after the storm.
5 Business Interruption Tips
- Demonstrating that the dealership was profitable before the storm and being able to quantify the profitability. This includes having monthly or even daily profit and loss reports before the storm.
- Showing the financial results during the indemnity period, typically on a more granular level. This means that daily sales reports, banking information, payroll information, etc. must be maintained.
- Clearly showing any loss of inventory, so the maintenance of inventory records is tantamount. Take pictures of any damaged inventory. Document any delays to the supply resulting from the storm.
- Maintain detailed records, such as invoices, to account for any additional costs incurred on temporary repairs, such as a generator rental, additional security, etc. These costs are essential to demonstrate that your made efforts to mitigate damages.
- Review your insurance policy and understand its coverage. What is the business interruption clause or coverage? Work to determine the proper indemnity period and reach out to your agent with any questions.
Contact Us
Compiling your financials and business records when filing for a business interruption insurance claim can take time. Reach out to Withum’s Dealership Advisory Services Team for assistance with the process.
