
The Role of Business Insurance in Disaster Recovery Planning
While the business world may be rife with opportunities and excitement, there’s also no shortage of things that can go wrong. Regardless of preparation and safety precautions, your business may only be able to do so much to prevent certain losses, such as those caused by natural disasters. Fortunately, the right business insurance can address these situations and limit financial losses that might otherwise incur devastating consequences.
How Can Business Insurance Help Your Company After Disasters?
Natural disasters may come in many forms and can occur with minimal warning. Addressing these potentially catastrophic events may require careful consideration of various coverages and insurance products. Consider investing in the following policies:
- Commercial property insurance—This is a staple of many businesses’ coverage portfolios and can help pay to replace or repair tangible assets following many common natural disasters and weather-related incidents, such as tornadoes, wildfires and hail.
- Flood insurance—Whether caused by heavy rainfall, rapid snowmelt, overflowing bodies of water or other situations, flood-related losses are typically excluded from standard commercial property insurance. Fortunately, separate flood coverage can often be purchased through the National Flood Insurance Program or many private insurers.
- Earthquake insurance—These seismic events can inflict devastating damage on your business’s assets and financial interests and, like floods, may be explicitly excluded from commercial property coverage. Addressing this coverage gap with separate earthquake insurance may be necessary.
- Commercial auto insurance—These policies can offer critical coverage if your business relies on cars, trucks, vans or other automobiles. Specifically, you should prioritize comprehensive coverage within your commercial auto policy, as this feature can help manage many disaster-related losses.
- Business interruption insurance—While the aforementioned types of coverage can help pay to repair, restore or replace property, these policies may be necessary for indirect financial losses. For example, if a storm forces your business to close temporarily, business interruption insurance may help you recoup the revenue you would have earned and pay for ongoing expenses.
By procuring the right combination of policies and retaining a suitable business insurance portfolio, your company can ensure it has access to essential funds and resources and can get back on its feet following a variety of natural disasters.
Get the Right Coverage
Contact Prescott & Craig Inc. today to learn more about business insurance and identify ideal coverage solutions.
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.
Categories: Blog, Business Insurance