Business Interruption Insurance
Business Interruption Insurance for Contractors compensates for the costs and lost profits as a consequence of your business suffering a major disruption.
For example, a fire either at a client premises or in your home may result in the loss of files, computer equipment or other materials that are central to your consulting business.
Amounts paid out by business interruption insurance will be critical to enabling you to rapidly re-establish your consulting practice, replacing essential equipment such as laptop, software, cabling and supporting technology such as wireless routers and servers, telephone equipment, printer and other office furniture.
In addition, it may be necessary for you to incur the extra expense of renting a workspace whilst your main operational office is being repaired or reinstated. This process could take many months during which time you will need an alternative base.
Business Continuity Planning
.And while we're on the subject of Business Continuity Planning, a critical requirement that is often overlooked, typically because it fails to make it on to the list of priorities, is to ensure that you maintain up-to-date back up copies of all information that is central to your consulting practice.
This would include but not be limited to:
- Client files
- Intellectual Property including your proprietary consulting Models and Methodologies
- Your database of contacts
- Archived emails
- Copies of commercial contracts with clients and suppliers
- All financial and tax related information
I would suggest that if any or all of the information listed above is lost then your ability to continue in business would be substantially impaired.
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