Economic Development Recovery and Resiliency Playbook - Flipbook - Page 110
2. Determine ideal boundary alternatives.
a. Is there the potential for growth that will generate tax increment for investments?
b. Does a redevelopment project area already exist there?
c. If a CRIA, does the area qualify?
d. Are there significant residential uses, and if so, will residents support bond issuance for an EIFD or approval of the
formation of a CRIA?
3. Perform a ballpark analysis to determine the revenue potential.
Notes on Individual Insurance
Insurance Coverages. Several private resources are available to businesses during disaster response and recovery, and
all require a knowledge of your business risks and appropriate insurance coverages. The following are key components
summarized from the nonprofit United Policyholders.
• Know your local risks: earthquakes, floods, wildfires, etc. If you need additional coverage because your basic policy does
not cover earthquakes and flooding, please inquire about additional coverage options.
• Customize your coverage for your local risks and your business’s specific risks — cover your property, your inventory, your
electronic data, and your business income.
• Follow recommendations for add-ons that will plug exclusions and coverage gaps.
• Understand how policy deductibles will apply, how quickly your insurance will kick in, and for how long. This may vary
with diferent causes of loss and categories of coverage.
• Save important documents ofsite, including notes of communications with your agent/broker and insurance company.
Your insurance coverage will likely be the deciding factor in whether your business can survive and thrive afer a disaster.
Insurance details matter, and policies difer in how much they cover and exclude. Some agents, claim adjusters, and insurance
policies are better than others.
Your Business Owner’s Property (BOP) insurance policy should cover the cost to repair or replace your buildings, equipment,
inventory, vehicles, income that you may lose due to a covered event, and expenses you may incur to resume operations afer
a disaster.
If your basic BOP does not have the special wording that covers loss of income, you need a separate business interruption
insurance policy or rider to provide that essential protection. Business interruption insurance provides funds to make up the
diference between your business’s normal income and income during and immediately afer a forced shutdown, also known as
the “Period of restoration.”
Important types of business interruption coverage include the following.
• “Contingent business interruption” extends the coverage to include income losses that are incurred as a result of
property loss at a key supplier or customer location.
• “Civil authority” coverage gives you protection for losses due to mandatory closures, evacuations, curfews, or other
oficial shutdowns or prevented access to your business.
• “Service interruption” coverage protects against losses due to a disruption of utilities or equipment breakdown due to
power outages, surges, etc.
• “Extra expense” coverage is for additional expenses, such as rent for a temporary location, moving costs, hiring additional
temporary help, or the cost of expediting replacement equipment/supplies. These are necessary extra expenses during
the period of restoration that a business would not have incurred had there been no loss or damage to covered property.
If you haven’t checked your policies lately to make sure you’ve got what you need, you may be wasting a lot of money paying
for insurance. Your coverage may be outdated and there may be new exclusions for important things like water damage in the
current version of your policy.
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