In today’s small business insurance market, it is possible to get some disaster coverage in your small business property insurance coverage. However, as a business owner, it is up to you to dig for what is covered and what’s not.
Typically, your property insurance covers property from the every day risks for things like theft or damage from an accident. Disaster insurance will cover the immediate loss and impact to your business and property from a specific occurrence like a flood.
As noted above, it is now possible to add coverage to your existing policy for specific disasters like flood, earthquakes, and acts of terrorism. It is important to review your present coverage and look for any specific exclusion written into your existing business property policy.
Sitting down with your licensed insurance professional is important before determining what coverage is necessary and how it works in conjunction with your existing property insurance. What you are trying to accomplish is a combination of coverage and policies which reduces your risk and doesn’t duplicate coverage. You want your premium dollars working for you for the maximum coverage.
Generally, disaster coverage deductibles are a percentage of the loss, unlike your business property coverage which will have a set deductible. Depending on the amount of the loss, that can be a significant number. Work with your licensed insurance professional to determine what risk(s) exposure your business has, and how to best manage the risk with a combination of business insurance and separate disaster coverage.
Don’t be afraid to ask questions and get a clear understanding of how your coverage will work in the event it is needed.