Contact Information

Dan Smith - Underwriter
VGM Insurance
Phone: 800-362-3363
Fax: 319-235-6656

Business Interruption Coverage

Business interruption insurance is designed to pay you for losses arising from the inability to continue the normal operations and functions of your business. Coverage is triggered by the total or partial suspension of business operations due to the loss, loss of use, or damage to all or part of the buildings, machinery, equipment, or other personal property thereof, as the result of a covered cause of loss. A rider or endorsement to a commercial property insurance policy generally provides business interruption coverage. Your insurance agent will be able to tell you if you have coverage.

When confronted with a business interruption loss, you should take the following steps:

1. Call your broker or agent, who needs to involve the insurance company immediately.

2. Make decisions in your businesses best interest, regardless of whether they fit into insurance coverage. This includes replacing broken windows or other damage to your building. Take all reasonable steps to protect your property from further damage. If feasible, set the damaged property aside and in the best possible order for examination. It is important to note that you are responsible for your property – not the insurance company. After the initial storm damage, YOU must prevent additional damage to the best of your ability.

3. Assign an account number to the loss so that all costs can be captured – costs that might include extra labor and materials to clean up buildings, expenses for emergency or temporary repairs, or costs involved in relocation of your business.

4. Provide the insurance company with access numbers for the people that know the impact of the loss and what needs to be done to restore operations.

5. Identify extra expenses, which includes the cost of continuing operations at the current site, moving to a temporary location, using other company facilities, contracting out work and paying overtime and bonuses.

6. Evaluate what must be done to get back into business, either at the current location or a temporary location. Also, determine what products are most important to get back into production.

7. As often as may be reasonably required, permit inspection of the property proving the loss or damage and allow examination of books and records.

8. Remember, the camera can be a very important tool when documenting your losses. Keep it handy, take lots of pictures, and be ready to provide them to the insurance company adjusters.

VGM Insurance Risk Management Services

Business Auto Coverage

In the event of a loss or damage to your business (or personal) automobile due to hurricane Katrina the following applies:

1. Damage to your automobile by a storm falls under the heading of “comprehensive” or “other than collision” coverage, depending on your insurance company’s language. Coverage is often referred to as “full coverage” or “liability only”.

2. If you purchased the “full coverage” option for your business or personal autos, you will have coverage for damage from the storm or subsequent flooding for the current value of the auto minus the deductible amount outlined in the policy.