Chapter 11. Financial Liquidity

If you have followed the advice set forth in Part One, Prepare, of this book, you have put in place an insurance program for your small business. In this chapter, I will guide you through the process of dealing with insured property losses. I begin with an overview of the steps to follow in preparing your claim. Next, I offer some suggestions to identify insurance policies implicated in your business's property loss and to reconstruct insurance policies. I give some specific information concerning disaster relief programs that your business might qualify for and, as your ongoing business success is dependent of your disaster recovery efforts, I will offer some practical advice to communicate your efforts to all of the stakeholders in your small business. Let's begin with the most time-critical element of securing insurance coverage: mitigating losses.


One of the most important activities you will undertake in respect to securing property insurance coverage is loss mitigation. You must demonstrate to your insurer that you acted in good faith to mitigate the losses to your business arising from a disaster. Let us develop an example. Imagine that an intruder gained access to your office over the weekend by means of forced entry and stole laptops and some petty cash. On Monday morning, you arrived at the office to find that a window was broken and there were fragments of glass inside the office. Of course, you will notify the police ...

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