A Commercial Property insurance policy is meant to help protect your building, contents, equipment, and sometimes income after certain types of disasters. But the word disaster can mean very different things depending on the policy language.
Many business owners assume their insurance covers every kind of major event, only to learn too late that some disasters are included while others are excluded because they require separate coverage. For restaurants and small businesses, knowing the difference is essential for planning ahead.
In our latest Aegis blog post, discover some of the covered disasters that a standard Commercial Property policy will cover, and which ones generally need a separate endorsement or policy in order to be fully protected. Also discover how Aegis can help your business identify disaster risks your business faces and how to shield your business from their devastating impacts.
Nearly all small business owners carry Commercial Property coverage to protect the value of their building, inventory, equipment, and other assets. Most of these policies cover a variety of sudden and accidental events, including:
These are among the most common reasons businesses file claims, and a single one can be catastrophic. For a restaurant, a kitchen fire, broken sprinkler line, or storm-damaged roof can disrupt operations quickly, so having this base layer of coverage is critical.
When it comes to Business Insurance, not every type of disaster is automatically included in coverage. Floods, earthquakes, mudslides, some types of sewer backups, and off-premises utility failures often require separate policies or endorsements.
In many parts of the country, business owners need to think about local weather patterns and geographic risks before deciding what coverage is enough. A restaurant on the Gulf Coast, for example, may face very different weather risks than one located inland, and those on the West Coast may face threats of earthquakes and mudslides that don’t impact other parts of the country.
One way to ensure a more robust form of protection is to pair your existing Commercial Property policy with Business Interruption coverage, which helps replace lost income if a covered disaster forces a temporary shutdown. This part of the policy can be just as important as physical damage coverage because a disaster does not only damage buildings.
A natural disaster or catastrophic event can easily stop revenue, disrupt staffing, and delay reopening. However, Business Income coverage usually depends on the original event being covered by the policy, so understanding the details of your policy matters.
Not all property losses will qualify as a covered event for your existing Commercial Insurance policies. For instance, any service interruption involving overhead utility lines is usually excluded from Business Interruption and Food Spoilage coverage by default and has to be manually added as a separate endorsement, if your carrier even allows it.
Every business should take the time to review the disasters most likely to affect its location, building structure, and operations. That might include fire suppression issues in a kitchen, storm damage to the roof, or severe weather that interrupts power. Some of the biggest coverage decisions include:
Disasters are unpredictable, but your company’s insurance coverage shouldn’t be. A proper Commercial Insurance review can help ensure the right risks are covered before a loss happens.
At Aegis Insurance & Financial Services, we help you understand what your Commercial Property policy really includes so you can protect what you’ve worked hard to build. Contact Aegis Insurance & Financial Services at 713-850-7622 for more information or to schedule a consultation with our Commercial Insurance agents.
Call Us TODAY!
713-850-7622