subject: Why Insurance Is A Must For Business Owners [print this page] If you are a business owner with a warehouse that stores your equipment or products it is essential that you have adequate insurance in case something should happen such as a fire or flood. There are several horror stories out there that should bring you round to the idea.
A warehouse that was used as part of business to dispose of waste for the catering industry was destroyed in a fire in April 2010. Around 600,000 of stock was destroyed and when you add in the value of the building, the total cost will be around 1 million. This was a successful business that was producing a good profit, but for whatever reason, the owner did not have insurance. The owner faced bankruptcy and could do nothing as his entire business was burnt to the ground.
However some warehouses suffer fire damage that does not wipe out the entire building and stock. Even a small amount of damage can cost a lot of money though, from replacing the lost stock or equipment, to organising the warehouse cleaning with a specialist industrial cleaning company.
A near miss occurred earlier this year when a recycling warehouse was destroyed in Scotland, at the former Carlsberg depot. Everything in the recycling warehouse was destroyed, but a neighbouring business managed to get away with no damage whatsoever. A spray painting and panel beating business due to open the next month was in a rented property backing onto the warehouse when the fire broke out. Luckily nothing was damaged, very lucky indeed because the business owner had no insurance! However even a small amount of damage could have wreaked havoc on the new business. Again, it is the cost of cleanup and stock and equipment that can take its toll on a small businesses bank account. A specialist company experienced in builders clean, fire damage, smoke damage, flood damage, etc needs to be hired for the clean-up operation. You will also need to consider replacing the equipment you need and making up for lost stock as well as all the time that you will lose.
It is advisable to look into a suitable insurance policy that covers you for all aspects of damage that could accidentally occur at your warehouse or business. Do not underestimate what even a small fire or flood could do to your business in terms of costs and time.
by: Jo da Silva
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