Preparing for Natural Disasters: Is Your Business Covered? 

Your business can face various risks and exposures daily, many of which may not be completely under your control. Some of the most prevalent threats for many organizations include natural disasters and severe weather events. While you may be powerless to prevent these incidents, you do have ample ability to fortify your financial interests and position yourself to endure potential damages. Understanding appropriate insurance is key.

What Types of Insurance Do I Need for Natural Disasters?

Your company may need multiple types of insurance when addressing possible natural disasters. These policies’ parameters and capabilities can vary by location and carrier, but in many cases, you’ll want to make sure your coverage can respond to losses arising from the following:

• Floods—Whether caused by heavy precipitation, overflowing bodies of water or infrastructural issues, rising floodwaters can inflict devastating damage on your business. Resulting losses are often excluded from standard commercial property insurance policies, meaning you’ll need to purchase separate coverage from the National Flood Insurance Program or a private insurer for this financial protection.

• Earthquakes—Like floods, damage caused by these seismic events is typically excluded from standard commercial property insurance. Given the potential destruction caused by an earthquake and how they can strike without warning, responsible businesses should highly consider retaining an earthquake insurance policy to secure their financial interests.

• Tornadoes—Commercial property insurance often covers windstorms and tornadoes, but businesses should do their due diligence and analyze their policy closely. In some parts of the country, wind-related losses may be excluded or require a separate deductible.

• Wildfires—These natural disasters can devastate entire communities and regions, potentially leaving little but rubble remaining among their embers. Traditionally, they have been an included peril in standard policies, but the increasing frequency and severity of wildfires have caused some insurers to begin making exceptions. Discussing your coverage with your agent is critical.

We’re Here to Help

Contact Family Affordable Insurance in Edinburg, Texas, today to learn more about covering your business against natural disasters.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.