Running a business is hard enough without having business disrupted by extreme weather. Unfortunately, you cannot stop it from storming outside. What you can do is make sure that your business has the insurance coverage it needs to protect against losses when extreme weather happens.
Increasing Risks to Your Business
Is your business at risk due to natural disasters and inclement weather? Look no further than the weather-related headlines across North America this summer. Slow-moving storms over the Northeastern United States have caused extensive and lethal flooding across New York and New England, impacting homes, highways, and businesses. Businesses in downtown Montpelier, Vermont, were devastated, facing tens of millions of dollars of damage.
As flooding happens in the Northeastern U.S., central Canada faced damage from tornados, especially in the Ottawa Valley area, while parts of Montreal flooded due to heavy rains and sewer overflow. In Western Canada and the United States, wildfires continue to be a risk, forcing evacuations of entire communities.
These are all risks that you can face as both a community member and a business owner, and the disruptiveness of extreme weather is only expected to increase in frequency.
What Does Business Insurance Cover?
Every business needs to be insured, whether that is against loss or liability. When it comes to extreme weather claims, this is what business insurance typically covers. Not only should you know what your policy covers before you make a claim, but you should be prepared to get the help of a lawyer for insurance claims. They can help you stay on top of paperwork, explain the details of your policy, and make the process as quick and painless as possible so that you can get back to running your business. An insurance lawyer will also help you manage your claim and take some of the stress off of your plate as you juggle various tasks following a large loss. When something as important as your business is involved, having the help of an insurance lawyer can have a large impact.
Insurance for Structural Damage
If you own the premises, damage to the physical structure of your business can be expensive. Structural coverage from your insurance policy should help you make repairs to the building so that you can reopen and get operating again.
As much of a pain as it can be to deal with these repairs, the process can be much faster than if you lease your space. If you are leasing your space, then you will have to coordinate with the landlord, who has their own policy to deal with the structural repairs. This may mean that the timeline for repairs and when you can continue business is out of your control while the landlord negotiates their own claim.
Business Interruption Insurance
One of the most important types of coverage your business should have is business interruption insurance. This type of coverage will replace business income lost because you can no longer operate as a result of the loss. That could be because your location flooded, or it could be because your entire community was forced to evacuate due to wildfire, even if your business experienced no physical damage.
Business interruption insurance can help you stay on top of debt payments, payroll, paying suppliers, and other expenses, even when extreme weather prevents you from doing business as usual.
Coverage for Inventory and Equipment
Last but not least, your insurance policy should also help you replace lost equipment and inventory. Fire can consume your entire place of business, and everything in it, while flooding can also cause extensive losses, especially to inventory and equipment that is stored in your space.
When you run a business, make sure your insurance policy is up to the task of meeting today’s risks. Extreme weather events are becoming more common and causing more damage across North America. Make sure you are protected against them by reviewing your policy.