Hurricane Preparedness Insurance Tips To Help Your Business Weather The Storm
Before a storm, make sure you know what your policy covers.
1. Know what type of damage is covered, and what is not.
Most commercial property policies provide coverage for all risks of physical loss or damage to property unless a risk is excluded. Analyze your policy to determine whether and how much coverage is afforded for your central risks, including:
Flood damage, even if caused by a storm surge or wind-driven rain.
Physical loss or damage to insured property, including whether the policy includes replacement cost coverage (to cover costs to replace or rebuild damaged property).
Spoilage coverage for perishable goods-particularly important for businesses in food service or grocery.
Debris removal, which is typically subject to a sublimit.
Business interruption and extra expe3nse coverage, which covers loss of income and increased temporary operating expenses incurred while repairs are being made. Determine if your policy provides extended period of indemnity coverage for costs incurred in ramping back to normal operating levels after repairs are complete.
Ingress and egress coverage to cover lost business income when entry or exit from the property is not possible because of property damage, such as blocked roads or broken bridges.
Contingent business interruption coverage, to cover lost business income because of disruptions in supply chain caused by physical damage at other location or physical damage to customers or attraction.
2. Know what assets are covered
If the policy requires a schedule, be sure it is as up-to-date as possible before a storm.
3. Understand the policy's causation language.
4. Consider whether additional lines of coverage are needed.
5. Make sure you are aware of any deadlines in the policy.
6. Make note of your duties under the policy.
7. Be aware of any appraisal provisions.
After a storm, ensure a coordinated response and claims process.
8. Document your mitigation efforts.
9. Prepare a proof of loss.
10. Consider retaining an expert.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client.
For further information please contact me at www.kmckernanlaw.com kevin@kmckernan.com or 718-317-5007.