Our country has many examples of natural wonder and beauty, such as the Grand Canyon, Niagara Falls, The Rocky Mountains, and the mighty Mississippi River. However, we regularly face dangers and threats that also come from Mother Nature, such as earthquakes, wildfires, floods, hurricanes, and other severe weather. Given the recent earthquakes in California and flooding in the Midwest, businesses must make sure they are well protected from natural disasters, whether they are local or halfway across the country. Today's Aegis blog post looks at how Commercial Insurance can help protect your business from natural disasters.
Commercial Property Insurance
The first step in protecting your business from natural disaster losses is to have quality Commercial Property Insurance in place. These policies pay to replace or repair the business property needed to operate if it's lost, stolen, or damaged in a natural disaster. For example, Commercial Property Insurance would cover any tools, equipment, merchandise, or raw materials that are destroyed in a fire or lost in a windstorm.
Flood Insurance
While Commercial Property Insurance covers property lost to some natural disasters such as wildfire, tornadoes, or lightning, it does not include all types of natural disasters, such as flooding. In order to be protected from losses stemming from excluded major catastrophes, businesses need to have additional coverage for these events, especially if they are located in an area that puts them at a higher risk for loss. If your business is located in or near a floodplain, then Flood Insurance is an important investment because of the higher risk of flood damage.
Business Interruption Insurance
If your business is forced to close due to a covered event, such as a fire or hurricane damage, your business will still need some way to pay for ongoing expenses that don't go away during a closure. Business Interruption Insurance works by providing companies with the funds to cover taxes, rent or lease payments, employee payroll, utilities, and other continuing expenses. In addition, it can help pay for lost wages that would have normally been earned, as well as relocation costs if a temporary location is needed.
Contingent Business Interruption Coverage
Finally, companies that never suffer any direct damages from natural disasters could still be negatively impacted by disasters that occur elsewhere that devastate key suppliers as well as large clients. For example, if your retail store's primary supplier is forced to close due to wildfire or flood damage, it could cause your own business to close temporarily and lose customers. Contingent Business Interruption coverage helps companies in these situations by paying for ongoing expenses while you replace the lost supplier or primary customer. If the future of your business depends on the support or services of a major client or key supplier, then Contingent Business Interruption coverage is likely needed.
Although businesses can have sturdy buildings, reinforced doors and windows, and high-end security systems, there is no way to completely protect or shield a company from Mother Nature. Damages and losses can add up quickly whether a natural disaster impacts your own business or that of your key supplier or primary customer. Aegis Insurance & Financial Services can help your company have a Commercial Insurance portfolio that protects against a wide range of natural disasters, and can help provide financial security and peace of mind. Contact Aegis today at 713-850-7622 for more information about our wide range of Commercial Insurance policies, or fill out our online form for a free quote!