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Business Disaster Insurance
By the RestorationSOS Educational Staff
You're a business owner, you've put a lot of time, effort, and finances into growing your business and making it fulfill its potential. The last thing you want is to see it go downhill due to a natural disaster, fraud, or other major problems. You need a business insurance plan that covers the most without breaking the bank.
Most agents suggest buying insurance with an eye on major catastrophes, not necessarily run of the mill losses. It, therefore, becomes important to determine exactly what types of disasters your company might face and construct your business insurance plan accordingly.
Of course, there are some items that every plan needs such as workers compensation, property insurance, and general liability. This makes sure you are covered in the event of injuries sustained on the job, damage to building or contents, or injury/damage to other people or property as a result of something happening on your premises. Some firms offer deals, combining property and general liability for a slightly lower rate.
What Main Type of Insurance Do You Need?
One thing companies often overlook is insurance designed to protect them in the event of catastrophic damage. This is known as Business Interruption insurance and after events like Hurricane Katrina, no business should be caught without it. For starters, it is never the actual catastrophe that causes the most headaches; it is everything that comes after the catastrophe. Businesses may find themselves in the position of having to repair or rebuild and this policy makes sure you are able to replace lost income and provide for normal expenses. It will also cover any expenses incurred through your efforts to get back into the marketplace. Unfortunately, there are some drawbacks, most notably the waiting period that is set in place before you can collect (30 days is normal, but some providers may mandate longer periods), as well as a limited window through which a business interruption claim can be filed.
Most importantly, a basic business interruption policy only kicks in once you have been shut down by a physical loss of property. Business owners need to make sure they understand and accept all terms of the policy they have crafted before signing on the dotted line.
Insurance can be the saving grace for any company in the event of a major disaster. It is important to do some research and determine what types of large scale problems your particular company may face. Craft your insurance policy around these considerations.
It is also important to keep in mind what is and isn't covered. Flooding generally is not covered under most policies; however, storm damage can be provided that the damage isn't incurred as a result of neglect on the part of the business owner.