Hurricane Season: What kind of insurance does your business need?

Hurricane Season: What kind of insurance does your business need?Hurricane season started once again on June 1st. So what does this mean for your business? There are several coverages that could make or break you should the right storm hit at the right time.

Property Coverage

Hurricane insurance coverage is provided in your property insurance. Depending on your location, your proximity to the coastline, and your carrier, you will have several different types of coverage under your policy.

All Peril – This is the most comprehensive coverage – covering everything except for what is specifically excluded in the policy.

Named Peril – Will cover ONLY what is specifically noted in the policy. It’s usually less expensive but offers little 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 will all have a percentage 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.

Flood Insurance

Water damage is not the same as wind or storm damage. Most commercial property policies exclude coverage for losses caused by rising water. Much of the damage caused by hurricanes in coastal areas involves rising water which is not covered under most 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. It’s very important to make sure you are covered for both wind and rising water.

Business Interruption Coverage

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 business will find this lack of income detrimental for their business, and it causes many to close their doors. Business Interruption insurance will kick in after the 72-hour deductible period.

Make sure you are covered this hurricane season and contact your insurance advisor to go over your policies.


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W3 Named Best Place to Work by Business Insurance

Best Place to Work - Wallace Welch & WillinghamWallace Welch & Willingham (W3) is pleased to announce that they have been named a Best Place to Work by
Business Insurance, a national publication for independent insurance agents and brokers. This is the tenth award that W3 employees have won or have been named as finalists for this year.

W3 employees participated in an independent, confidential survey by Best Companies Group, commissioned by Business Insurance, which was then analyzed based on the eight core areas believed to show company culture and employee engagement and satisfaction. These core areas are leadership and planning; corporate culture and communications; role satisfaction; work environment; relationship with supervisor; training, development and resources; pay and benefits; and overall engagement.  W3 placed  13th in the U.S. Small Employer Category. Walt Grayson, W3’s COO, stated, “The acknowledgement as “Best Place to Work” is the result of all 92 employees wanting to be a “Best Place”.  This couldn’t be done without the commitment from everyone.”  Business Insurance covers core risk management and insurance areas such as property/casualty insurance, health insurance, captive insurance and other risk management.

Are you Covered for a Business Interruption?

Business Interruption Insurance - Be AwareRecent heavy rainfall reminds us that not all natural disasters are brought on by hurricanes. Due to heavy and constant rains, flooding has damaged much of Florida’s roadways. Last week, Governor Rick Scott declared a state of emergency for five counties. This included three bay area counties; Hillsborough, Pinellas, and Pasco.

Damage like this creates an immediate need for all for all companies to take a closer look at their insurance coverage. Would you be sufficiently covered in case of a natural disaster? States like Florida and other coastal locations are particularly susceptible to devastating losses from flooding, tropical storms, hurricanes.

“75% of businesses suffering major property damage are out of business within three years because they did not have a contingency plan or the proper financing to see them through the period of recovery.”

What is Business Income Insurance?

When it comes to managing your property risk, business owners should be concerned not only with a loss to their tangible property but also to their income. Natural disasters, fires, and other insured perils often result in an interruption of the operations of a business, which typically lead to a loss of income.  Business income insurance is designed to cover your economic damages when you experience a covered loss that results in a suspension of your business. A suspension of your business can mean either a slow down or a cessation of your business activities. Loss of income is defined in most policies as your net profit as well as continuing expenses, including payroll.  Extra expenses that you incur to recover from a disaster can also be covered.  You might think of it as disability insurance for your business!

What is Included in a Business Interruption Insurance Policy?

  • Compensation for lost income if you are no longer able to operate your business due to a disaster-related damage that is covered by your current property insurance policy.
  • Profits that would have been earned had the disaster not occurred. These numbers are based on previous financial records.
  • Operating expenses that must be paid even if the business is temporarily closed. Examples are utilities, rent, etc.
  • Expenses from a temporary location for you to operate out of while repairs are being made to your permanent location.

Business interruption insurance is one of the most valuable policies a business can have, yet it is often overlooked. Contact us today to learn more about this valuable policy.


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