Often, business owners believe their property insurance will cover damage from any type of disaster. That is a myth which costs many owners who don’t understand their coverage. In fact, many disasters may not be covered at all.
In general, your property insurance will cover you from a loss of a common risk like an accident, theft, or vandalism. Fire is normally covered under you property insurance but flooding may not be. In fact, even disaster insurance may not cover flooding. Talk to your commercial agent regarding damage from flooding, winding, and other natural disasters.
In the world of insurance today, there are various packages available to cover a multitude of risks. The key is to maximize coverage without duplication. Work with your commercial insurance agent to figure out specifically what coverage(s) is needed to protect your business property. Meet with your agent or broker and determine what coverage and risk your particular business could face.
You’ll need to compare policy coverage, premiums, risks, deductibles, and many factors in selecting your final property insurance coverage. Like many business people, after weighing the options, you’ll want to choose the most coverage you can afford.
Obviously, get the coverage(s) in place as most likely to least likely if affordability is an issue. Even with disaster insurance, look at the details of the policy and coverage options. Your state department of insurance may track types of disasters and losses for your area. This information may help you decide on types of coverage.
It’s also important to remember the effect of any type of disaster. Loss of income insurance should be discussed. Often, we forget about the down time a disaster will bring to the business. Loss of income insurance can cover the liabilities and owner’s income while reopening the business after a disaster. Check with your agent about this important coverage. Often, it is added as an option and sold as a separate policy.
In closing, also consider all the coverage with one insurance company. Generally, multiple policies are afforded discounts whether personal or business insurance. Don’t hesitate to ask your commercial broker if discounts are available.