23 Dental Practices Consumed by TornadoSubmitted by Mission Financial Planning on July 18th, 2011
I talked with a client who lives and practices just outside of Joplin, MO, a city recently devastated by a tornado that destroyed the main commercial drag through town and 7000 homes on either side of it. He told me that 22 dentists lost their practices that day. I later found out that “Of 58 dentists, at approximately 40 locations, there are 23 who had total destruction of their offices and others who have damage from the storm. As well, several doctors’ homes were completely destroyed or suffered varying degrees of damage.“ (click link to find out how you can help)
My client also shared a story of a physician’s practice that was up and running in another location by the end of that first week, thanks to his Business Interruption Insurance. Please use this story as motivation to check your coverage, usually included on your commercial property or comprehensive insurance, to see if it is sufficient to get you through a disaster.
About Business Interruption Insurance
Business Interruption Insurance covers profits you would have earned had your property not been damaged by the covered disaster. It also covers Fixed costs that are still being incurred even though you’re not seeing patients. Some policies cover the expenses of operating out of a temporary location while the original office is being repaired. Check to see if the amount of time your policy covers is “theoretical” (how long it should take) or “actual” (how long it does take).
Your policy should also include Extra Expense insurance. It would reimburse your business for reasonable expenses that would keep the business from shutting down during the recovery period. It’s to the insurance company’s advantage that you have this coverage – extra expense insurance can help decrease business interruption costs.
Most insurance would cover the practice in the event of fire, flood, storm, earthquake – natural disasters. Terrorism is an “add on” based on your area’s risk. You’ll also need an “ingress and egress endorsement,” which protects you if you have to shut down because of conditions in the area or a government edict.
Business Interruption coverage could potentially save your business—if your policy provides the proper protection. Check now to avoid surprises.
Mission Financial Planning is strictly fee-only and does not sell insurance. We are happy to talk with clients’ insurance agents to verify and optimize coverage.