The Risks of not Having Business Contents Insurance

Most businesses face a variety of risks every day. Protecting against these risks is an important part of any business plan. Failing to adequately address risk for a business could put it out of business in the event of a calamity.

While it is not always practicable to protect against every risk, the major or most common risks can be addressed. For example, many companies carry business contents insurance to cover items such as office computers and related equipment. In the event of a disaster such as theft or arson, the damage to the building structure itself might be covered by property insurance. However, property insurance may not cover damage or loss to the contents such as the business’s office equipment. And that’s where business contents insurance comes in.

As an example, let’s consider Bob. Bob owns his own plumbing supply company. He owns the building and carries property insurance on it and never gave it a second thought. Then an electrical fault caused a fire in the building one night and destroyed his office computers. His property insurance paid for the damage to the building, but not to his computers. So Bob was left scrambling trying to replace the computers, since without them he can’t access his customers orders or send out invoices.

Since Bob didn’t have the capital on hand to replace the computers immediately, he could look into instant decision loans to get the money he needs to replace the computers and get back in business. Otherwise, Bob’s Plumbing could face going out of business. A business that can’t process customer orders or send invoices is going to have serious problems.

In conclusion, addressing risk is an important part of any business continuity plan. Business contents insurance can be one element. Having reserve capital or a line of credit lined up can be helpful for unforeseen circumstances as well.