It’s better to have it, but not need it. Look how clever Pepa was.

Pepa runs a small bakery where she sells everything: drinks, nuts, some fruit, sweets… She’s a romantic who likes to chat with her clients, get their opinions, answer their questions… She works long hours, but she is doing well, quite well.

On Monday, they dug a ditch in front of her shop because work has started on the street. An excavator accidentally hit a pipe and the water was cut off. Heck!

She desperately called us this morning at the brokerage. We have reassured her because her business insurance includes loss of earnings. What’s that?

It’s a guarantee that pays you the money you should have earned had the accident not occurred. It kicks in when there are leaks, glass breakage, fires or works on public roads. It also compensates the owner of the premises if Pepa is renting and cannot pay (which is not her case). As long as the bakery remains closed, the insurance will pay her an amount equal to what she would have earned working. It is calculated based on the income prior to the accident multiplied by the days that she stops receiving it, and it is the capital that she contracted “just in case”, because “just-in-cases” do happen.

To collect, Pepa must explain and demonstrate what happened. She will present the accounts of other preceding years. An expert will make the valuation and… she will collect until the problem is resolved.