Business Interruption Insurance

I am hearing that Mississippi lawyers who have been displaced or impacted by Katrina are most concerned about how to recreate client files and financial records to continue their practice. There are a number of resources to be found on the ABA website (www.abanet.org/katrina) that provide information for file recreation and starting over that will be helpful to displaced lawyers to do just that . . . start over. There hasn't been much said about the importance of re-establishing cash flow. Cash flow is key to survival when disaster hits. Coverage for building, contents, computers and office equipment will provide funds to replace these assets. But what about the revenue being lost each day the displaced lawyer is unable to work; or the fees that have been billed but can't be accounted for because there is no A/R report; or the work in process that can't be billed because those records are gone. How will a firm impacted by Katrina survive without cash? The short answer is that it won't. Hopefully, the lawyers affected by Katrina have business interruption insurance. Do you? Business interruption insurance or business income coverage covers the financial losses that result from a business suspension or interruption. If an adequate policy is obtained, it can restore the firm to the same position it was in before the loss occurred. Check your policy; call your insurance agent and obtain the correct coverage before you need it.