Hurricane season is in full force across the country and in Texas, the worst may be yet to come!
If you’re a business owner, these storms pose a huge threat to your company and livelihood.
Since the force of Mother Nature can't be stopped during storm season, what can be done to protect your company?
The most protective and affordable option is buying business insurance that covers hurricane damage.
The right business insurance policy will help speed recovery in the event your location is affected by a hurricane this season.
Hurricanes Can Be Highly Destructive
The hurricanes that frequently happen in Texas are much more than just storms; they are natural disturbances of extreme magnitude that bring torrential rains and wind as well as flooding, fires, and other effects that can cause catastrophic damage to any building.
Business owners insurance is a primary defense against this kind of devastation that could put you out of business if lacking funds to repair or rebuild.
Sadly, 40% of all small businesses with physical and financial losses caused by hurricanes don’t reopen.
This is usually due to not having enough business insurance protection or not having the right coverage as certain types of damage may be excluded from the general policy and must be covered under additional policies or riders.
Hurricanes and Business Owners Insurance
Business insurance policies typically cover a variety of disaster-related damage: however, be sure to confirm exclusions before assuming it’s all covered.
One example is that business owners insurance may cover certain water damage associated with a hurricane yet not cover flood damage during the same event as flooding is covered under separate flood insurance.
Additionally, a standard business insurance policy probably won’t pay benefits for a number of other financial losses unless you have purchased coverage for those losses separately.
The key to being well-protected is understanding all the types of losses a company could sustain if your location is damaged in a hurricane and purchasing the appropriate coverage.
Leveraging Business Owners Policies
Substantial damage to your business location that requires closure for a while hurts more than just your company’s physical location.
With this in mind, choose business owners insurance policies that cover not just the building and equipment but also any related inability to generate income.
Business interruption insurance is just as important as coverage for physical damage, as it will keep paying salaries, loans, and other responsibilities while waiting for your facility to be repaired.
Most importantly, review your business owners insurance well in advance of when any devastating hurricane as many insurance providers exercise what is called a “cease bind” when a known storm has been projected.
It means no business can purchase new coverage if the agency recognizes the possibility of a pending storm that could cause damage.
Protect Your Business This Hurricane Season
Hurricanes are a fact of life in Texas, so it’s critical to protect your property with the right insurance.
Discuss business insurance needs with an insurance agency that understands the risks at this time of year and can help determine what critical business owners policies are needed to protect your livelihood!
