Cash Flow Cover
July 6, 2017
When John set up his business he never anticipated the series of stressful events that would occur. Luckily the policy we arranged, catered for a variety of scenarios to allow him to keep punching on.
When John set up his business he never anticipated the series of stressful events that would occur. Luckily the policy we arranged, catered for a variety of scenarios to allow him to keep punching on. John ran a business within a commercial complex which had experienced a fire. The building had extensive smoke and water damage to the interior of his business and fire damage to the building roof, fixtures and fittings. Repairs were quickly assessed and approved, however there was a problem with the cover for the building and the commercial landlord was found to be significantly under insured, which created a major delay in the settlement of the claim. John’s business was unable to trade and as a result lost customers. John’s cash flow policy provided regular payments from his insurer.
The claim on the building was finally approved and repairs commenced. John’s business was out of operation for 8 months and then recommenced trading however his sales remained low for some time after this. We set John’s policy up to receive payments from his cash flow policy until normal revenue streams steadied over the next 4 months. This allowed John to keep all his staff, cover his fixed costs and reestablish his business without the worry of cash flow.