Business Interruption Protection WorksheetFaith
To avoid underinsurance in a major claim, it is important to establish an Contingency Plan to continue operations due to the loss of your facilities for weeks, months and even in excess of a year, depending on how quickly your building could be repaired or rebuilt, which is often dependent on the time taken for such things as a Fire Marshall to establish cause of fire, structural engineers to determine in building is repairable, demolition, debris removal, site work preparation, tendering process and the actual construction period. It is not uncommon in a major fire, windstorm, floor or environment damage claim for a large building to take 12 to 24 months to repair or rebuild. Therefore your Contingency Plan needs to take into account Additional Expenses to continue to operate relating to the following:
- Rental of alternate location(s) for church services, Sunday school, offices and mid-week programs
- Rental of onsite portable buildings, especially for camps, schools, etc.
- Changes to content and locations of operation in your printed materials and on your website
- Telephone and computer hook-ups at temporary locations
- Rental of storage facilities for salvaged contents and equipment
- Plus many more potential expenses, depending on your size, location or unique programs
It is not uncommon for a large insurance claim to result in Additional Expenses in the hundreds of thousands of dollars for everal months and sometime up to 24-month period. A recent church fie claim payout included $2,200,000 to repair the building and almost $700,000 in Additional Expenses!
Although every organization’s coverage requirements will vary, for your convenience we have provided a Simplified Non-Profit Revenue and Additional Expenses Worksheet in order to assist you in establishing adquate Coverage amounts and Indemnity periods, for your potential Loss of Revenue and Additional Expenses, in the event of a major claim affecting your insured buildings and premises.
For the full worksheet, Church & Charity Protection Plus Members can access the information in the Ministry Leadership Resources – Click Here