Nearly eight months ago, business owners throughout southeast Texas were devastated by Hurricane Harvey, a torrential storm that brought record-shattering rainfall and widespread flooding. Thousands of companies throughout the Gulf Coast were left with no electricity, damaged buildings and assets, and substantial losses and cleanup. Sadly, a number of companies were unable to recover from the destruction for several key reasons related to business insurance coverage.  Today's Aegis blog post discusses factors that could cause a business to close long-term or permanently after a storm, and what can be done now to help prevent this from happening. 

Lack of Commercial Insurance Coverage

Unfortunately, a number of businesses in our region carry only the bare minimum of required commercial insurance, and do not carry policies that could protect against hurricane-related damages.  Some skip certain kinds of coverage, such as Business Income Coverage, because they don't know what it is, while others skip other kinds of policies, such as Flood Insurance, because they believe they won't ever flood.  Then there are businesses that have the wrong kind of policies that don't cover what's needed, or they have far too little in policy coverage.  When a business is lacking in terms of their Commercial Insurance coverage, it can be nearly impossible to recover from storm damages and losses because expenses and payments end up coming out of the pockets of company owners.  It's important for business owners to consult with their commercial insurance agent to ensure they have the right kind of policies with coverage amounts that will actually make a difference in recovery and repair efforts. 

Poor Protection For Structures and Assets

Although we can never accurately predict the strength, arrival time, or path of an incoming storm, we can take steps to ensure commercial properties and assets are as protected as possible to minimize the risk of damages. This means securing buildings and windows before a storm makes landfall, bringing in equipment and outdoor furnishings, and protecting commercial vehicles by moving them to parking garages or covered parking areas.  In addition, nearby trees can be pruned to help reduce the likelihood of broken or dangling limbs turning into weapons of destruction and property damages. These proactive steps can go a long way in reducing potential damages and shrinking the amount of time needed to close for repairs. 

No Contingency Plan

One of the biggest hurdles to overcoming potential damages and closures from a severe storm or hurricane is not having any kind of contingency plan for the business and employees.  For example, a lack of electricity and running water might force a business to close for time, but if they have a contingency plan in place, they could relocate temporarily and operate elsewhere, reducing downtime and allowing employees to return to work much sooner.  Also, contingency plans can also help if your business is spared but you suddenly need new vendors, suppliers, or delivery services because your regular ones were impacted. 

Companies of all sizes and industries should do what they can now to protect business structures, tools and equipment, raw materials and inventory, company vehicles, and their revenue streams with comprehensive commercial insurance. The experienced and friendly team at Aegis can help business owners get quality business insurance solutions to protect from any kind of disaster, including hurricanes, fire, theft, flooding, and more. Call Aegis today at 713-850-7622 to get more information on Commercial Insurance coverage or fill out our online form to get a quote today!