Insurance empowers commerce. Despite the setbacks of business, it keeps us moving forward. Smitty’s Better Burger, a longtime client, is a nostalgic local eatery in Hampton Roads. It recently re-opened its doors after a devastating fire that destroyed the interior of the restaurant and kitchen, forcing it to close its doors and lay off twenty-four employees.
But Smitty’s was well-protected. Their insurance policy was with Travelers and our claims agents ensured a company representative was on site in short order. Smitty’s had chosen a Business Owners insurance policy which contained top-tier coverage not only for the building, but also income that would be lost during the rebuilding process. Many businesses that experience such a devastating setback never reopen, even if the building is properly insured. This is because income goes away during that period and the business cannot afford the drastic loss of cash flow.
In the case of Smitty’s, yet another coverage called Ordinance or Law became a consideration. This is a special protection for when an older building is destroyed but current building codes require it be rebuilt to higher and more expensive standards.
Many businesses that experience such a devastating setback never reopen, even if the building is properly insured.”
Travelers quickly processed an initial payment based upon the value of the property. When rebuilding a structure, it is common for the payment to take place in at least two steps – an initial payment so the client can begin rebuilding, then a final payment after work is complete. Eight months after the original fire, the building was back together and final payment was processed.
Smitty’s recently enjoyed a grand re-opening, celebrated by friends, family, employees, local officials, and happy customers. Take a look at this Daily Press article for the full tale along with photos.
Insurance isn’t a story about faceless companies and stacks of paper, but about a promise to a business owner to keep their enterprise alive, a hope for twenty-four employees now able to return to work, a renewed source of revenue for the city, a historic landmark enduring through adversity, and thousands of customers once again able to enjoy a Smitty’s burger.
We’ve said it before: insurance pays.