Is Your Business Adequately Insured for a Hurricane?

Author: Staff | Wednesday, Jul 17, 2019

Hurricanes are disastrous and can lead to significant losses to your business and home! Many business owners do realize the extent of their exposure. While we have no control over natural disasters, it is important that we take all necessary precautions to protect our interests and minimize our risks. High winds and heavy rainfall can cause power outages, wind and water damage and other storm-related destruction to your commercial properties. In recent years, 6 of the 10 costliest hurricanes in U.S. history impacted Florida, 4 of which occurred in 2004 and 2005. What you need to assess is whether your business is prepared to withstand the financial burdens of a hurricane.

 What is Hurricane Insurance?

 The truth is, there is no single insurance policy for comprehensive hurricane coverage and many business owners do not realize that. While hurricane insurance is available as an add-on to your commercial policy, without it, you are not covered for damage from the flooding that results from these powerful storm systems. Water damage, common with hurricanes, is not considered the same as wind or storm damage, and most commercial property policies exclude coverage for losses caused by “rising water.” Flood insurance is a separate policy altogether that is generally required as an add-on (at extra cost) to your commercial property policy.

 Hurricane Coverage

 Hurricane insurance coverage for your property gives you several different types of coverage based on a number of considerations. These include the location of the business, your proximity to the coastline and your carrier.  If you are getting hurricane insurance coverage, you want to ensure that you get coverage for both wind and rising water. The distinction is important because most commercial property policies exclude coverage for damages or losses as a result of rising water.

 So, what are your coverage options? 

  • All Peril – This is the most comprehensive coverage of all, including everything except what has been specifically excluded in the policy.
  • Named Peril – As the name suggests, this type of coverage is for all sources of damage that are named in the policy. While it is less expensive than All Peril coverage, it does not provide your business with protection from any losses that are not specifically written into the policy. 
  • Wind and Hail – A wind and hail policy is very specific and restricts coverage to wind and hail damage only.

 Flood Insurance

If your business is in an area prone to hurricanes, flood insurance is important because it covers damage to your building and contents caused by rising water. Remember, rising water is not covered in a standard commercial property insurance policy, so making sure that you have this coverage in place will be important in your economic recovery from hurricanes and other storms that become major rain events. Flood policies also provide Storm Surge coverage [the ocean or intracoastal water being pushed inland by the high winds] which is important in our low lying area.

Consider Getting Business Interruption Coverage

As a business owner, considering business income coverage is just as important as the tangible property coverages. A natural disaster like a hurricane can adversely affect the operation of a business, leading to a loss of income and loss of sales. So, the next question is, do you have a contingency plan and enough financing to see you through a period of recovery after hurricane damage to your business or should you consider insurance protection for this contingency?

A business interruption policy will cover your economic damages and lost sales if you experience hurricane damage that prevents you from continuing normal operations of your business.

Let Massey, Clark, Fischer Help You Prepare!

In order to be hurricane-prepared, business owners need to be proactive! Now that summer and hurricane season are here, it’s important to review your policies and make sure that your business is adequately insured for both wind and rising water. Our team is available around the clock to help you understand and manage the potential risks of hurricanes and floods. 

We advise you on the type and amount of coverage to consider, and we will help facilitate the processing of any claims you may have. In addition, Massey, Clark, Fischer represents a number of different quality carriers that cater to both residential and commercial properties, giving you the freedom and knowledge to choose the coverage that best suits your needs. 

If you want to know whether you are adequately insured, give us a call today! We would be happy to advise you!