Natural Disasters and Your Business: Insurance Strategies for Weathering the Storm

Regardless of planning and precautions, certain incidents affecting your business might be unavoidable. When it comes to natural disasters, you’re often at the mercy of the environment around you. Still, while you might not be able to prevent severe weather, you can at least take steps to limit its impact on your financial interests and enable your business to recover as quickly as possible. Putting together a business insurance package capable of addressing natural disasters is critical.

How Can Insurance Cover Natural Disasters?

Not all natural disasters are treated the same by insurance carriers. In some cases, you may need specific endorsements and enhanced policies to address certain incidents. Others may often be covered by standard policies. Consider how the following types of insurance might help address losses arising from natural disasters:

• Commercial property insurance—This core element of many business insurance packages can help cover various tangible assets against some natural disasters, such as hail and wildfires, but exclusions may apply for many particularly severe incidents, such as floods and earthquakes.

• Flood insurance—Damage caused by external water entering your business are often explicitly excluded from standard commercial property insurance. Fortunately, your company can acquire flood-specific coverage through the National Flood Insurance Program or private carriers.

• Windstorm insurance—In some areas, such as those at risk of hurricanes, commercial property insurance may not cover wind-related losses, especially if they’re caused by a named storm, such as a hurricane. As such, windstorm insurance may be a necessary investment.

• Earthquake insurance—These seismic events are also often excluded from standard property insurance. Businesses in areas near fault lines or otherwise at risk of earthquakes should explore coverage options or risk having to pay devastating out-of-pocket costs following these natural disasters.

In addition to these types of insurance, your business should also explore business interruption coverage options, which can help you recoup income you would have earned and pay for ongoing expenses while recovering from covered natural disasters.

We’re Here to Help

At Global Insurance Agency in Houston, Texas, we’re ready to help you secure appropriate coverage for natural disasters. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.