Insurance...Loss of Revenue

[Guest Spiral]

I had a chat with someone yesterday about insurance and they stated that we should have loss of revenue insurance at the same amount (or above) as our annual income.

 

This would cover loss of earnings, rental costs if we had to hire a hall etc...is this person right?

 

Thoughts please,

 

thank you,

Spiral :-)

[Stargrower]

Yes, we have loss of income insurance. I'm not sure how much it is without looking but it's part of our package.

[Panders]

It makes perfect sense, but it is expensive, so you must risk assess yourselves as to how likely it could be that you would be forced to stop trading for any length of time.

 

Are you in a flood risk area which might close you down. Can you run the pre-school if you are the leader/owner and are off sick for any length of time, i.e are your current staff ready willing and able to carry on without you? If you had to shut,in a rush do you have a contingency fund to pay off parents and local authority whose fees have already been paid in advance?

 

Lots to think about.

[Guest sn0wdr0p]

I decided this was too expensive some time ago. I can't get cover for flooding anyway as we are in a high risk area (on the East Coast) and that is probably what I am most worried about.

[lynned55]

I did look at this but quite frankly, the premiums were so high it just wasn't worth it.

[sunnyday]

I did look at this but quite frankly, the premiums were so high it just wasn't worth it.

Same as that :1b .......+ I like 'living life on the edge'!

I would just have to deal with issues from a 'sudden closure' if/when it ever happened :1b

[Stargrower]

Just had a look and we are covered for loss of income to £150,000. This comes as part of our nursery insurance package along with employers liability, contents etc etc. We pay £75 a month.