Preparing Your Business for the Unexpected

September is National Preparedness Month but it’s always the right time to be preparing your business for the unexpected.

Last year was California’s worst fire season on record with blazes continuing to burn into this year, causing tens of millions of dollars in destruction. Additionally, the 2020 hurricane season slashed records as floods poured over Southern and Eastern states, with another active season ripping through the nation again this year.

September is National Preparedness Month but it’s always the right time to ready yourself for the unexpected.

When Disaster Strikes

Natural disasters are out of our control and can strike at any time. If you haven’t already, take time to make a plan, prepare a kit, and educate youth about disaster safety and emergency protocols. Preparedness can begin in your home.

Ready.gov recommends you should “Gather supplies that will last for several days after a disaster for everyone living in your home. Don’t forget to consider the unique needs each person or pet may have in case you have to evacuate quickly.”

Practicing proactive efforts can ensure your family is aware and ready in the event of the unthinkable.

Beyond Your Home: Protect Your Business

Consider proactive approaches you can take to make your employees aware of potential natural disasters and understand steps to take in the event of an emergency.

Proper training in disaster preparedness can make sure your staff stays safe in case of an emergency. It’s important to be sure that everyone in the building knows what to do in a time of crisis. Check building compliance to make sure everything is up to standard with visible emergency signage, clear pathways, and exit routes, and refreshed first-aid kits and fire extinguishers.

Disaster Insurance: Are You Covered?

Your business is a vital part of your life, your employees’ lives, and your community. But did you know that damage from some natural disasters such as floods and earthquakes often aren’t covered under standard commercial insurance coverage? Your business may benefit from extra coverage and policy protection depending on your location and risk.

What does Fire Insurance cover and when do I need it?

Most commercial property insurance will cover damage by fire, depending on what was damaged and how the fire started. For example, it’s important to understand the difference in coverage from electrical fire caused by equipment on the property and wildfire started off-site in nearby brush or forested areas. You should consult with your provider to know how your specific policy offers you coverage to know where you are protected.

Fire damage is the most common and most expensive insurance claim faced by small businesses. It’s essential to understand your risks and coverage to make sure your company is prepared for any potential damage and injury that could be caused by wildfires.

When considering your protection against wildfire damage, understand your commercial property insurance policy, speaking to your provider or account manager if necessary to make sure you have the coverage needed to protect your employees and your business.

What does Earthquake Insurance cover and when do I need it?

Many people are unaware that their commercial property insurance alone does not cover damage or loss caused by earthquakes. Since earthquakes can strike at any given time and can trigger other disasters such as landslides, sinkholes, or fire, the potential damage is too great to include in your regular policy.

If your business is in a high-risk area, such as California, it might be smart to talk to a risk advisor about adding earthquake insurance to your policy. This will allow protection in the event your business or company property is damaged due to an earthquake.

Earthquake insurance will cover several costs such as damage to your building including broken windows or cracks in the walls from the earthquake. It will also help cover costs related to debris clean-up after the earthquake.

However, your earthquake insurance policy will not cover damage by fire or damage to vehicles even if that loss was caused directly by the earthquake. These damages would be covered by your commercial property insurance and auto insurance policies, respectively.

What does Flood Insurance cover and when do I need it?

Floods are the nation’s number one natural disaster, yet many businesses aren’t properly protected by their insurance policies. Damages from flooding by overflow of inland or tidal waters, runoff, or tremendous rainfall are not covered in standard property insurance. For coverage from severe water damages such as these, you’ll need proper flood insurance for your business.

Commercial Flood Insurance is a separate type of policy that can be purchased to protect your business and property in the event of an emergency. Understanding the benefits of comprehensive coverage can help your business in case of a disastrous flood.

If your business is in a high-risk area or to better understand your risks, speak with a trusted risk advisor to prepare yourself and your business for a potential crisis. Many policies require a 30-day waiting period after signing to become available, so it’s important to act proactively! Policies can be tailored to the specific needs of your business to ensure you receive the coverage your need.

Plan for the Unthinkable

If your business doesn’t have the extra coverage needed to protect your assets in the event of a natural disaster, it might be wise to speak with a Risk Advisor today and take the initiative to protect your company and property.

Our expert team at Morris & Garritano can walk you through your risks and offer the best coverage for the unique needs of your specific business and operation. We specialize in understanding the specific needs of your business and personally finding the best policy for you. Speak with one of our advisors today to ensure that this Fall, you can have peace of mind knowing you’re prepared for anything.