Insuring Your Business Against a Catastrophe

business insurance

As a business owner, you should always be alert especially if you are in areas prone to natural disasters. Small businesses are usually vulnerable to such natural catastrophes because they have limited resources compared to larger ones. 

Most small businesses fail to recover after having been hit by a natural disaster. With different types of insurance covers at your disposal, you can be sure of reviving your business after a catastrophe. Make sure to insure your business or if it is already insured, find some time to review the existing policies in relation to your business. Here are some of the natural disasters that the insurance may cover for your business:

Insuring Against Tornadoes

Another destructive natural disaster is the tornado. To keep your business safe from the destructive tornado, you should have a comprehensive tornado emergency plan, create an effective post-tornado plan, and back up your entire business data. Most importantly, you should acquire insurance cover for your small business. 

An additional Business Property insurance may come in handy to cover the unanticipated costs that may arise in the aftermath of the tornado disaster. Other great add-ons are Business Interruption and Commercial Auto covers although you are advised to approach your insurance company to enquire about your full coverage.

Insuring Against Hurricanes

You may have heard stories about the impact and damage caused by hurricanes. This catastrophic weather event can bring huge losses to your small business. Therefore, you must be prepared adequately should a hurricane strike at any moment. 

The best way to cover your business against the damages resulting from this devastating weather event is by insuring it. An insurance cover will take care of property damages and loss at a relatively lower rate. 

Additional cover is a better option if your small business is located within the tropics where hurricanes are frequent. In this regard, you may settle for both commercial property insurance and commercial flood insurance policies to cover hurricane damage and flood damage. Another way to protect your business is by taking Business Interruption cover to take care of the incurred loss after a natural disaster.

Insuring Against Earthquakes

Earthquakes can be scary, destructive, and fatal. Worst still, they can disrupt production and interfere with your small business. An earthquake poses risks such as accidents, fires from electrical shorts and gas leaks, and damage to your property. Even though you may not prevent an earthquake, you can still be prepared by considering the steps below:

  • Conduct regular drills to keep your employees informed and alert
  • Keep away potentially hazardous materials
  • Prepare a continuity plan for your business

Above all, insure your business against disasters resulting from earthquakes.A Business Interruption insurance cover is highly recommended to ensure the continuity of your small business after the disaster.

Insuring Against Wildfires

Wildfires have been a common thing lately due to changing weather conditions. These fires can be deadly and destructive to humans and properties alike. Unlike other natural disasters, wildfires tend to spread rapidly. So, if your small business is located in areas prone to wildfires, it is recommended that you consider the following simple precautionary measures:

  • Make sure that your employees are familiar with all fire safety protocols as well as procedures
  • Have a working evacuation plan
  • Remove combustible materials from your business premises and keep them far away
  • Ensure that fire extinguisher and sprinklers are accessible and in good working conditions

Besides, make sure that your business has adequate insurance coverage in the form of Commercial Property insurance cover. This type of insurance for businesses covers any damage on your business premises, equipment, tools, and inventory caused by wildfire. Another cover that you should acquire is the Business Interruption insurance. This cover comes as a complement to ensure that your operating expenses are fully taken care of should you relocate your business to a new place.

Insuring Against Floods

Floods are common in areas that receive heavy rainfall and snowfalls. This is a costly natural disaster in many countries. The cost of damage from flooding can be estimated into millions of dollars, especially for small businesses. Follow these steps as your preparation before the floods strike:

  • Prepare an evacuation plan and find out which roads to use should the floods occur
  • Put the survival kits ready 
  • Keep all backup copies of your most important business documents 
  • Take valuable items to a higher or safer place

To be on the safe side, take the Commercial Property insurance and Commercial Flood insurance covers for your business. These two policies will cover the cost of restoring your business after the floods. 

Final Thought

The most common types of natural disasters that may affect your business are severe weather events, floods, wildfires, and earthquakes. Ensure your business against these disasters to be sure of its continuity.