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As a professional getting closer to retirement, creating a will, trust, and estate plan might feel increasingly urgent. But where do you begin? And who has the time? It might feel overwhelming to create and collect documents with all the different professionals required to protect your estate, including financial planners, lawyers, and insurance agents.
The challenge with hoarding documents is that as more and more start adding up, it is quite easy to lose track of what’s in there and what’s not – not to mention that large stacks become increasingly difficult to manage. If you are looking to create a legacy plan based on those documents, your family might find it difficult to sort through them. There is also a risk of those files getting damaged.
Over the course of our blog, we have mentioned several key elements that make an insurance company desirable for customers. From offering clients bespoke solutions to their needs all the way to ensuring they are satisfied with your service and policies; everything adds up.
When it comes to legacy planning, many think that distributing your financial assets is all there is to a good legacy. However, it is important to remember that money will only last so long, while property tends to lose its sentimental value over time.
A survey published in 2019 showed that globally, 54% of individuals were concerned about their privacy. 68% of Latin Americans and 48% in North America reflected the same concern. More than 61% of Americans suggested that they wanted to do more to protect their privacy. Here is a graph to illustrate our point:
2020 has been an exceptionally uncertain year, impacting both individuals and businesses. Countless businesses faced interruptions, leading owners to make tough decisions, including closing their doors to the public. These challenges weren't solely attributed to COVID-19 but also resulted from civil unrest, natural disasters, and unforeseen events.
In such times, the significance of business insurance, particularly business interruption insurance or business income insurance, becomes paramount. This discussion delves into the crucial role this insurance plays in ensuring business continuity and effectively responding to potential losses.
Business Interruption Insurance – What Is It?
Business interruption insurance is a coverage type that activates when a business experiences income loss due to unforeseen circumstances, particularly unexpected disasters like flooding, hurricane damage, fires, or events such as the COVID-19 pandemic.
It's essential to note that this insurance isn't typically sold as a standalone product but is usually included in a comprehensive package, as an add-on, or rider. A typical business interruption clause might read:
"The Insurer shall pay for actual business income loss the insured sustains due to the necessary suspension of 'operations' during the period of 'restoration.' Suspension must be a result of direct physical loss, damage, or destruction to the insured party’s property and result from a covered cause."
Several key conditions need fulfillment for business interruption insurance to be applicable. Key elements include:
Actual Business Income Loss
Coverage is limited to the actual loss a business sustains due to an unforeseen disaster leading to a business interruption. The insurer pays based on the business's past performance or the policy limit.
Business Income
Business income encompasses net income and operating expenses, including salaries and overheads that must be paid despite the suspension of operations.
Restoration Period
The insurer is liable to pay for income lost during the restoration period—the time needed to bring the damaged or destroyed property back into operation. This period begins at the occurrence of the loss or damage and extends until the property is reasonably repaired or rebuilt. The coverage persists until the limit is reached or the restoration period is complete, even if the policy expires during this time.
Contingent Business Interruption (CBI)
This is an insurance extension covering the loss of business income due to damage to assets or property owned by a third party, including suppliers, receivers, manufacturers, and lessees.
Civil or Military Authority Business Interruptions
This clause covers actual loss of business income due to civil or military prohibitions, with coverage extending up to 30 consecutive days unless otherwise specified.
If you'd like to learn more about business interruption insurance or are looking for ways to protect your business against uncertainties, get in touch with us via call or email. We'll help you keep your business safe and ensure continuity, all while helping you maintain your legacy!
The Coronavirus pandemic sent shockwaves across the globe, prompting an inevitable need for change in everyone's lives. Daily reports during the height of the pandemic brought the stark reality of mortality into our homes through various devices. It underscored the necessity of planning for the future, whatever that future might hold. To facilitate this planning, we've crafted a checklist to guide you through the process. Tackling these tasks gradually, rather than all at once, can help create a comprehensive life plan that will fortify you and your loved ones against any unforeseen event.
IIn 2020, 54% of Americans owned life insurance, while 91.5% had a health insurance plan. Despite the substantial gap in ownership percentages, these terms, health and life insurance, are often mistakenly used interchangeably. This common error can have direct implications for financial planning and, ultimately, one's well-being.
Cryptocurrency and Bitcoin security have always been a delicate matter concerning insurance. With over 7% of Americans owning cryptocurrency, the demand for this relatively secure asset is steadily rising. As global interest in cryptocurrency grows, governments are closely scrutinizing the asset. The Kimmelman v. Wayne Insurance Group case serves as a prime example of the complexities involved in insuring cryptocurrencies.
