If you own business property in Texas, one of your priorities should be commercial insurance, and protecting that property and the business.
Of course, times change and the commercial property insurance policy you have had in the past may not be suitable for renewal without a review.
This is especially true when reflecting on the major happenings the past few years have seen, all of which can affect insurance and maintaining the right coverage.
Consider these ideas and how they affect Texas businesses, then contact a commercial property insurance agency to review your policy.
Natural Disasters Are On The Rise
In Texas as in some other parts of the country, there is a greater chance of being affected by a natural disaster, making commercial insurance that covers these events essential.
From floods and hurricanes to wildfires and wind damage, Texas is one of a few states that can experience all of those things, putting properties at greater risk.
Many of these perils must be included with a commercial property insurance policy as add-on coverage.
These days, failing to do so is leaving your property at risk for catastrophic damage with no recourse.
Civil Unrest Is A Real Threat Today
Our country is currently dealing with domestic circumstances that have erupted into civil unrest the likes of which it has not been seen in decades.
Crime rates are rising astronomically with the increasing civil unrest.
Avoid assuming that a standard policy from a commercial property insurance agency covers the damage caused during acts of civil unrest or all examples of crime that affect your property.
Policies should be reviewed and updated based on risk and what damage is likely to be sustained, with supplemental coverage purchased to fill any gaps in the standard commercial policy.
The Complexities of Pandemic Coverage and Businesses
As business losses due to COVID-19 closures pile up, many businesses are finding that their losses are not covered by their commercial insurance.
Moving forward, some agencies are now adding certain types of pandemic coverage; however, it varies greatly between insurance agencies and the policies they offer.
Business owners must use this time to evaluate current losses and protect against future losses by seeking out policies that provide the type and amount of coverage needed to be highly protective in these types of events.
Repair and Replacement Costs Are Growing Every Day
Another critical detail to factor into your commercial property insurance is the ever-increasing costs of repairing or replacing damaged property.
Discuss both with an insurance agency to determine what each will cost today as opposed to last year, then increase policy limits as required.
Between natural disasters, pandemic closures, production and supply chain interruptions, and many other contributors, the costs of goods and labor today will quickly exhaust previously-set benefit limitations.
Losses Are Much More Than Just Physical
When commercial properties are damaged due to a covered event, business owners must factor in income loss as well as the physical damage.
A thorough and protective commercial insurance policy should include coverage that specifically outlines covered losses and pays benefits for lost income if the damage disrupts business operation.
Again, with instances that can result in damage claims on the rise, this add-on benefit is more important than ever before.
Yesterday’s Insurance Policy Is Not Enough Today
To summarize all of this, it is essential that business owners recognize the ways their commercial property insurance policy from even as recent as pre-pandemic may not be protective enough for them today.
Rather than risking the increased risk of your business suffering a major loss due to one of these aforementioned factors, let a reputable commercial property insurance agency help identify your actual current risk based on recent events.
This critical information will show where your coverage gaps are and what a more complete policy should encompass.
