Natural disasters can occur at any time but tornado and hurricane season are upon us and it is important to understand how these natural disasters can affect your business. Not knowing how long your business may be closed due to a disaster is one of the reasons why companies need business interruption insurance.
Hurricanes, floods and earthquakes are a good reminder for businesses to review their insurance policies to understand how they are covered in the event of a natural disaster. Here are four considerations when reviewing business interruption insurance options:
- Almost 40% of small businesses do not reopen after a disaster because they are not adequately covered. It may be tempting to choose less coverage if you have not experienced a natural disaster but do not underestimate how much damage may be caused and how long your business will be interrupted.
- You may not be directly affected by a natural disasters but your suppliers might be. If you cannot get the products you need, contingent business interruption will reimburse lost profits.
- Review payroll coverage to determine which employees should be covered and paid during rebuilding or closures.
- Create a disaster recovery and communications plan that includes technical aspects of what is needed to get up and running again and how you intend to update employees.
Oftentimes business interruption insurance is not top-of-mind for businesses until a loss actually occurs. Plan ahead and review your insurance policies to make sure you are adequately covered in the event of a natural disaster. To learn more about protecting your business, visit AssuredPartners NL Property & Casualty.
Source: PropertyCasualty360Share This: