Lightning from the big storm strikes Sam's machine shop and completely fries a $200,000 machine. Here’s the good news: Insurance to replace the damaged piece of equipment covers lightning, so he’s able to replace the machine. Unfortunately, Sam’s supplier predicts it will be a month before it can get the new unit to him. He can’t work without it, and, after shopping around, he discovers the cost to rent a temporary replacement is $500 per day.
Here's the really bad news: Sam does not have business income and extra expense insurance.
Why is this bad news? He has to make a choice: close the shop or pay $500 per day for a month. Both options result in lost dollars that would have been covered by a business income and extra expense policy, but since Sam chose to forgo this valuable coverage, he will have to pay those costs himself. Sam just suffered more lightning damage – this time to his pocket and bottom line.
For more information on this important coverage and how it can help keep your business running after a loss, contact your insurance agent today.
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