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With most natural disasters, there’s no way to know when exactly one will hit. While scientists make predictions about the number and severity of occurrences, there can always be surprises. Natural disaster insurance helps your business to be ready for the unexpected.
Many standard business insurance policies either include very high deductibles for claims resulting from natural disasters, or they do not cover these claims at all. The first step in any risk management planning is to understand what is most likely to happen and what current insurance coverage is in place. Identifying gaps in coverage may help save tens of thousands of dollars or more down the road.
Read the news coverage after any natural disaster and you’re bound to hear horror stories about the costs of repairs. Even one inch of water in a flooded building can cause five-figure damage. When you consider the water damage from something like a sewer backup, in addition to the water damage itself, you can be dealing with hazardous waste cleanup, too. Depending on how hard an area is hit by a natural disaster, resources could become difficult to find, leading to delays in repairs. This can turn a bad situation worse as mold grows or a wind-damaged roof lets additional rain in. Financial distress on account of these events just makes the remediation process more complicated.
Because natural disasters are unpredictable, it mainly depends on your location and the level of risk for certain events such as tornadoes, flooding, hurricanes, earthquakes, wildfires, and more.
Even if you have natural disaster insurance to cover the costs of repairs to your property, there’s a good chance your business may need to shut down temporarily. If you own an apartment building, your tenants may need to move out during this time, leaving you in the lurch from lost rent. Business interruption insurance may help bridge that gap and prevent financial ruin. Be sure to thoroughly check what perils are included in your policy and seek out additional coverage if necessary.
To learn more about the kinds of natural disaster insurance you might want to consider, contact us.