You never know when and where lightning will strike. You know the common saying, prevention is better than cure. Businesses are exposed to so many risks, including damage from harsh environmental conditions, and yet we cannot really accurately predict the weather and tell when it is going to be destructive.
If you are located in places that are prone to harsh or damaging weather conditions, taking out insurance for your business can be a potential lifesaver.
Custom Designed Policies
These are policies designed to fit your unique situation if you are unable to find a policy that will adequately cover the needs of your business. The best way to determine what you need would be to seek the services of a professional. Policies may vary from state to state. If you are in the Boston area, here’s a good source where you can find out more about business insurance Massachusetts.
Common Policies
Take a look at seven ways to protect your business from harsh environmental conditions. Of course, your needs will vary depending on the type and size of business that you are in.
1. Event Weather Insurance
It covers your outdoor business events (e.g. fairs, exhibitions, sporting events, concerts, etc) and any losses that you may incur should the weather interfere with your event. It can also cover indoor events that the weather may tamper with. It is also known as rain insurance because rain is the most common outdoor weather peril but it also covers you in the event of snow, hurricanes, electrical storms and the like.
2. Business Property Insurance
In the event that your business premise is damaged by severe weather conditions, this insurance cover can help with any replacements and repairs that will need to be undertaken. There are different types of business property insurance.
3. Storm Insurance
Wind storm damage to your property and merchandise is covered under this policy. Other things in your business, such as furniture and office supplies, are covered by content insurance.
4. Snow Removal Insurance
This is for snow removing professionals who clear the snow off of roads, driveways, and parking lots during the winter season. If this is your business, you can insure use this policy to insure it against customers slipping and falling over your equipment, personal injury due to icy conditions, and so on.
5. Business Interruption Insurance
This is also known as Business Income and Extra Expense Insurance. It covers the income that you will lose when you are forced to temporarily close your business because of happenings beyond your control, like weather damage, for example. Please note that it does not cover damages caused by floods and earthquakes. For this, you can take out other policies.
You can get covered for the profits or revenue that you would have made had it not been for the incident. Running costs can also be covered – for example, your staff can continue to be paid even though your business has been interrupted. If you have to temporarily shift to a new location, moving and rental expenses can also be covered.
Also covered is the rent expense for your old premise that you may be forced to continue paying despite the damage, depending on the existing policies. Taxes and loan payments can also be covered.
Flood Risk Insurance
If your business is in an area that is prone to flooding, then this is a must-have insurance cover. You can back this up with sewer backup insurance because the flood water could mix with this drainage water and create a health risk.
Conclusion
The continuing climate changes mean that your business is exposed to more risks because of more extreme weather and flooding. It is better to be safe than sorry. Have a business recovery plan. Take out insurance for your business today.