Accounts Receivable Coverage

This coverage can protect a business owner if he or she is unable to collect outstanding balances as a result of lost or damaged account records. You need to consider to what level of protection you need. Your policy may package this coverage or you may to have to purchase it separately. Consider your situation as to whether or not you need this. If you have made a disk listing all your clients and their contact information it would prove helpful in restoring the records of accounts. This should be kept off site.

Be aware that Forensic Accountants usually bring in a team to help in the restoration of records. You are looking at a minimum of $100/hour in costs.

If you know that this could be a problem area for you at the time of a claim then consider increasing your coverage. Talk to your broker or agent as to what is available to better protect your interest.