H. Abbe International, owned by Herb agency and freight forwarder located Minneapolis. When the building that h firm's offices suffered damage as are the firm was forced to relocate its 2 ci 11 employees. Moving into the office worked from this temporary location returning to his regular offices. The di: about $70,000 in lost business and recover age should Abbe, is a travel downtown used the suit of arson, computers and of a client, Abbe Dr a month before sruption cost him moving expenses. In addition, he had to lay off four employees.
Question 1 What are the major types of risk faced by a firm such as H. Abbe International? What kind of insurance will cover these risks?
Question 2 What kind of insurance would have helped Abbe cope with the loss resulting from arson? In purchasing this kind of insurance, what questions must be answered about the amount and terms?
Question 3 Would you have recommended that Abbe purchase insurance that would have covered the losses in this case?