June 6th, 2010 – you are the proprietor of a very successful bar/restaurant in the up and coming west loop of Chicago. A famous Chicago hockey team are facing off against the Philly team in Game 6 of the Championship, a place they haven’t been since getting swept by Pittsburgh in 1993.
Rightfully, the city is electrified by this all-star young squad and your bar has been absolutely slammed for every game of the entire playoffs. Easily pulling in $750k a night in revenue and pushing up to $1 million since the final series has begun. Puck drop is in 30 minutes, the bar is starting to get crowded and then the worst possible thing happens.
The power surges and the power completely shuts off, all your 60-inch TVs that line the walls are blank. All the coolers shut off. The taps don’t work and everyone is in the dark. As you frantically call electric company to see when the power will come back on you get the worst possible news. Power was out for your city block and wont be on for at least the next 12 hours.
What is there to do in this situation? As your patrons flood out of your establishment to go find a place to watch one of the most exciting games in hockey history you are left wondering how you are going to be able to recoup this devastating loss.
This is where your Business Income coverage would kick in. With qualified receipts from the previous games you would be able to build a case with your insurance carrier to recoup the losses from the power outage. You would need to have the proper coverage in place to make sure this was covered too. You would need Actual Loss Sustained as the amendment on the policy. Most policies have a 24 hour (or more) waiting period before you can file a claim. For a bar/restaurant in this situation that would not be acceptable as the problem would be fixed in 24 hours. You would also need to have realistic limits on your policy, in this case a 1 million dollar cap should be sufficient.
With the proper coverage in place you were able to recoup the entire loss that you would have sustained if you didn’t have the proper business insurance in place.
Business Income is a critical coverage for every business and can be tailored to fit your businesses specific needs.
Are you properly covered?