One of the first questions any business owner is asked when researching commercial insurance options is where the business is located. While there are a number of factors that impact a business's risk, location is one of the most influential when it comes to premium rates, coverage options, endorsements, and exclusions. There is no such thing as the perfect location for a business, but understanding and thoroughly researching a location before establishing a business can significantly reduce potential risk. In today's blog post, we'll look at three ways location can impact a business's potential risk and premiums.
Potential For Flooding
In Houston, one of the greatest and most unpredictable threats to any type of business comes from flooding. Because our city has a low elevation with close proximity to the Gulf Coast, area businesses face higher risks of flooding from hurricanes, thunderstorms, or even flash floods that cause streets and bayous to overflow. A business that is in Houston's flood plain or is close to bayous, rivers, or other large bodies of water faces a much higher likelihood of flooding, which can devastate structures, commercial vehicles, equipment, electronic assets, and inventory.
High Traffic Areas
The risk involved with high traffic areas comes from increased exposure to vehicles and customers. High traffic areas or busy roadways can make it more difficult for customers to reach your business, especially if there is only one access point to the parking lot. Potential customers might decide to not bother driving through busy traffic and crossing congested roads to visit your place of business, leading to lost revenue. Also, there is a greater likelihood for car accidents or truck spills to negatively impact business, and high foot traffic also means higher business liability from potential customer injuries on sidewalks, entryways, and parking lots.
Increased Theft or Vandalism
Businesses or offices located in densely populated areas may face higher rates of vandalism, theft, or robbery. Bored teenagers, petty thieves, or even large crime rings target businesses in the hopes of finding electronic equipment, tools, inventory, raw materials like copper, cash, or other company valuables.
Although no business can ever be completely shielded from risks, thorough research beforehand can help identify locations that offer significantly lower risks or liability issues. Aegis partners with a large number of Houston area businesses to create custom commercial insurance solutions that meet their unique needs. Aegis offers a full range of Commercial Insurance coverage options, including Business Owners Policy, General Liability, Commercial Property Insurance, Commercial Auto, and Workers Compensation. Contact Aegis at 713-850-7522 for more information, or go online to request a free quote!