Hurricane season starts on June 1st and lasts through the end of November. What does that mean for your business? There are several types of insurance coverage available to help you stay protected from a hurricane – making wise decisions about your coverage could make or break your business if the wrong storm hits at the wrong time.
What Type of Insurance Covers Hurricanes?
Hurricane insurance coverage is normally provided in your property insurance policy. There are several types of coverage available, depending on your location, your proximity to the coastline, and your carrier.
Property Insurance Coverage for Hurricane Damage
All Peril – This is the most comprehensive coverage – covering everything except for what is specifically excluded in the policy.
Named Peril – This will cover ONLY what is specifically noted in the policy. It’s usually less expensive but offers more restrictive coverage.
Wind and Hail – This is the most restrictive of the three coverages and only covers damage caused by wind or hail.
All Peril, Named Peril, and Wind & Hail policies will have a deductible attached. It can vary from a dollar amount to a percentage amount. A deductible is the amount of loss paid by the policyholder before the insurance will begin.
Does My Business Need Flood Insurance for Hurricanes?
Water damage isn’t the same as wind or storm damage. Most commercial property policies exclude coverage for losses caused by rising water. However, much of the damage caused by hurricanes in coastal areas involves rising water which isn’t covered under most property insurance policies.
In cases where homes or businesses sustain concurrent wind and rising water damage, some insurers attempt to separate the covered wind damage from the uncovered rising water damage and pay what they owe. Other carriers deny the claims entirely citing the flood exclusion. Consequently, it’s essential to make sure you’re covered for both wind and rising water.
Does Business Interruption Insurance Cover Hurricanes?
Even if you have proper coverage under your property and flood policies, your business could be in danger. Could your business survive being closed and non-operational for 30 days or more during repair time? Most small businesses would have a hard time surviving that long of a closure, and it causes many to shut their doors.
Fortunately, business interruption insurance kicks in after the 72-hour deductible period. It can help you cover ongoing expenses and make up lost revenue while you’re getting back on your feet.
Make Sure You’re Protected
Make sure you’re covered this hurricane season – contact an agent at Wallace, Welch & Willingham or call us at 727-522-7777 to find out what your business needs to be fully protected.