8 Tips To Insure Your Commercial Property From Natural Disasters

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commercial property natural disasters

People purchase insurance to protect their person and property from the financial effects of any injury or damage. To that effect, when it comes to commercial property insurance, several small things need to be considered. It is because you are now responsible for not just the well-being of the people on the premises but also the equipment and the actual physical structure of the building. Considering the scale of operations and the value of the commercial building, if there is damage due to a natural disaster, the chances are high that it will run into thousands of dollars. As a business owner, if you have covered your bases well and have adequate coverage, there is nothing to worry about.

As it happens, big enterprises are in a relatively better position to handle losses as compared to small businesses because of their numerous resources. Also, according to a FEMA report, a majority of small businesses are unable to recover from the loss incurred by a natural disaster. Therefore, the main concern remains how to make sure that you have thought of all eventualities?

Tips To Get The Right Insurance For Your Commercial Property From Natural Disasters

For any business owner, tangible property is a significant asset. Being prepared with appropriate insurance coverage is critical for your business. The only way to ensure that is by knowing which natural disaster can strike and its most likely period. So let’s get started:

1. Find Out What Natural Calamities Regularly Hit Your Area – If there is a weather phenomenon that frequently visits your state and may result in a calamity, you need to be aware of it. For example, if you live in a coastal area where hurricanes are regular, you must have hurricane insurance for your business. Investing in a commercial building and not protecting it against known dangers is a foolish mistake, especially when it is a natural calamity. 

2. Earthquakes Can Hit Anywhere Anytime – One natural calamity that can strike anywhere and anytime is an Earthquake. Not everyone suffers a significant loss, but ask those who do, and they will have some harrowing tales to tell, especially in the business community. An earthquake can damage buildings and machines, and it can also hurt people. In short, the chances are pretty high that it may lead to disruption in production. How long the situation will persist will also depend on the overall loss suffered in the area. At times like these getting the people for repairs also becomes very difficult. Some even start taking advantage of the situation and charge well over the standard rate. Having an insurance policy that covers damage due to the earthquake along with loss of income will see you through even such challenging times.

3. Understand Important Insurance Terminology – If you want to understand insurance, you should be able to speak insurance, and by that, we mean insurance terminology. What insurance companies usually do is throw in big terms to distract you from what is important. What you need to understand are terms like “Premium” (what you’ll be paying for the coverage), “Deductible” (the amount that you have to pay from your pocket before the insurance comes into effect), and “Covered Loss” (incident or event that the insurance policy covers). 

4. Get Multiple Quotes – Whenever you are purchasing a commercial property insurance cover, look at several insurance companies for quotes. The idea is to be well aware of the premium range and cover that you can get at that price. For all you may know, you might just find a commercial property insurance package that meets your needs on all fronts. At the end of the day, our advice is – look at the overall picture. Don’t get lured by low premiums. Low premiums may come at the cost of inadequate coverage, and that is one mistake you should avoid at all costs.

5. Understand In Complete Detail All Calamities That Are Covered – When considering different quotes, consider all they cover, including natural calamities. In some states, you have to buy special covers through the insurance pool, so understanding what precisely the policy covers is essential.

6. Look Into Insurance Bundles – Insurance companies don’t offer only one type of coverage. Typically, they have several products from which one can choose. It is always better to ask for insurance bundles. For example, a hurricane insurance bundle may cover flood insurance and liability coverage. Individual covers carry a high premium, soan insurance bundle will serve you better if you wish to save some money. In the end, it may also give you the best chance at protecting your commercial property.

7. Look At The Hidden Costs – When purchasing an insurance policy, you should ask as many questions as possible. We commit the gravest mistake by not questioning the insurance company’s representative, assuming it will make us look like a fool. This is where the insurance company gains the upper hand. Very conveniently, they will fail to mention the hidden costs and clauses that may limit or reduce your cover.  

8. Look Into Tax Implications – Commercial property insurance is tax-deductible. You can save a lot of money if you properly investigate its tax implications. If necessary, take the help of somebody who knows the state’s tax laws and understands its connotations regarding insurance.

The Crux

Insuring commercial property is no easy matter. You want to do it right the very first time because, by the time you realize your mistake, it will be too late to rectify matters. When looking to insure your commercial property against natural disasters, you need to be aware of facts. Being vigilant about the contents of the policy will only be to your benefit. 

If at any time the situation seems overwhelming or you feel it would be better if only somebody could guide you through the mire of innumerable decisions in purchasing the best commercial property insurance, hire a public adjuster. Continental Public Adjusters is a renowned company that has successfully settled thousands of commercial property insurance claims. Our offices are located throughout Florida, so you can visit us anytime. You can also reach out to us at (800) 989-4769.