Hidden Dangers
Hidden Dangers that can put you out of business!
The
manufacturing business is tough enough without having to worry about the
additional burdens your hometown can impose.
Nevertheless…you need to be aware that your city can literally put you out of
business after a firestorm or windstorm. Many require you to demolish portions
of your building even though they aren’t damaged! It sounds crazy…but it’s a
fact.
Your business could be located in a “non-conforming pre-existing” structure.
That’s just a fancy way to say that the city lets you continue to do business in
a building that doesn’t conform to local building laws. These principles also
applied to a “mixed construction” building. As long as the building isn’t
damaged you can continue to do business there but if you have any type of
substantial damage to the structure you will be required to replace the
UNDAMAGED portions of your building right along with the damaged sections!
This would involve tearing the UNDAMAGED portions of the building down, hauling
away the debris and replacing them with a new structure. A very expensive
proposition that few businesses could afford.
The killer in all this is that property insurance normally doesn’t cover these
additional costs and few business owners are aware of these dangers. It doesn’t
cost much to protect yourself against these costs, but your agent has to be
aware of the danger and know how to arrange your coverage so you get paid when
your loss occurs.
We
have been dealing with these local ordinances for over thirty years and they
aren’t a mystery to us. If you would like to know what
your particular city requires just click here and we will get that information
for you.
Other dangers…
You probably know that surges in electric power can damage the computer brain of
your manufacturing equipment but did you know that this damage is probably not
covered by your insurance?
Competition is requiring many utilities to delay equipment replacement that used
to be routine.
Delaying transformer replacement can lead to electrical losses to manufacturing
equipment. One such loss from a failed transformer shorted out an electrical
panel resulting in a $36,000 loss!
Most policies will not
pay if the damage is not caused by lightening, and still others pay only if the
electric surge occurred within 500 feet of your property! Professional advice
from experienced insurance people can save the day when faced with such a
circumstance. We know what can happen and what coverage you need.
Click here to receive our free report on how to protect
your organization from these types of losses ranging from just an inconvenience
to financial disaster.
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