Mind the Gaps: Ensuring your business insurance covers the work you do

Mind the Gaps: Ensuring your business insurance covers the work you do.

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The cleaning and restoration industry is a great business to be in. Few sectors in the economy hold the growth potential as the cleaning and restoration industry.

Our firm assists in insuring more than a thousand cleaning and restoration firms. Over the past three years our clients’ average annual sales, as shown on their insurance applications, are growing over 15 percent each year with some firms posting 200 percent revenue gains.

Fueling the growth in our customer base is an underlying trend in extreme weather events. American Risk Management Resources Network LLC anticipates significant growth throughout the cleaning and restoration industry for many decades into the future due to an increase in extreme storm systems as a direct result of climate change. If you are interested in more information on this overall topic, please attend my presentation at the upcoming Experience Convention and Trade Show in Las Vegas.

Climate change will create more opportunities for larger jobs and more frequent jobs, which in turn increases your overall business risk. For you to be able to help people in need and reap the rewards of extreme weather patterns, your firm has to be in business when the storms come to your area.

Through the cracks

As you take on more risk, it becomes increasingly important to ensure your risk-management strategy is dialed in, and insurance can help with that strategy. Unfortunately, the insurance programs for nine out of 10 restoration firms contain material coverage defects. The statistics on cleaning firms are better, with only one out of three cleaning firms being fundamentally uninsured for things they do every day for a living.

In this series of articles, I will provide you with some advice on the nuts and bolts insurance that would pertain to your firm.

Insurance is used as one of many risk management tools for your business. However, if you were to purchase insurance for every risk your business takes on, you would be left with little to no profits at the end of the fiscal year.

Insurance should be used to protect your business from catastrophic risks that could potentially put your company out of business. In this article, I will touch on insurance products available to the cleaning and restoration industry and begin to focus more in-depth on the various insurance products you are most likely buying to protect your business.