Damaged facilities and equipment from disasters such as fire or flood mean that business operation is disrupted, and this mean loss of business. It can also result in loss of business to the competitors. Restoration of equipment and building takes shorter time than replacement which can take up to 1 year even longer. Restoration helps you bring back to business in the shortest period of time.
Restoration cost is lower than replacement cost. This will lower the recovery cost, resulting in a lower insurance premium for subsequent renewals.