Business support functions - Stake your claim
When a business needs to make an insurance claim, openness and truthfulness are key. Adrienne Kouwenhoven explains how businesses should deal with the claims process when faced with a major business interruption.
Over the past decade, a series of natural disasters have shaken countries across the world: the tsunami in Japan, earthquakes in Chile and Haiti in 2010 as well as in China in 2008, and widespread flooding in Thailand and the Philippines have, in addition to causing huge loss of life, rocked infrastructures. In 2013, even closer to home, the UK saw severe storms in July and December, causing widespread damage. So as a business, how do you cope with these types of disaster? These risks can be insured against, but the protection measures don’t end there.
Disasters usually require immediate attention and resources, which can strain cashflow in the short term. While insurance is an important protection against the worst of the effects of sudden shocks, it doesn’t remove the need for adequate planning. Being unaware of the procedures and having no proper plan in place will affect the claims process, which can threaten the existence of the business as a whole.
Earthquakes and floods such as those mentioned above are risks that can severely affect a business.
This is an extract from the Finance & Management Magazine, Issue 223, July/August 2014.
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