Here are 5 Natural Disasters that can wreak havoc on your Small Business.
With the presence of hurricane season upon us and the two examples we have in Hurricanes Harvey and Irma, now is a good time to have a conversation with your insurance agent about just what risks your small business faces when it comes to natural disasters. The risks are going to be different depending upon where your business operates, but now is as good of a time as ever to determine what risks you face and what coverages you may or may not need. Here are 5 types of disasters every business should prepare itself for.
Obviously, if you live in the Midwest, you may not need coverage to protect your business from a hurricane. But the effects of a hurricane can travel very far inland, depending upon the strength of the storm. The states of Tennessee and Kentucky do not have a coast line, but they are feeling the effects of Hurricane Harvey at this very moment. If you live in a coastal community, it is important to find out what exactly your hurricane policy does and does not cover. You may need an additional flood policy to deal with storm surge and flooding that comes after the tornado. A short conversation with your agent should help you determine what all policies you need.
Tornadoes are a type of natural disaster that can reach far and wide. They are not isolated just to the Midwest. Tornadoes can impact a small area of one small town or they can damage many areas through a state or region. Predicting them is difficult and the only true way to protect your business is to have the proper insurance coverage in place. Tornadoes are another type of disaster that also have a need for flood insurance.
Fires can come in the form of forest fires or local fires due to man-made causes. Certain areas in the Western United States are more prone to fires because of the dry nature of the climate in this part of the country. Forest fires can damage wet areas too as was seen last fall when many areas in Tennessee and North Carolina were ravaged by forest fires near Gatlinburg, TN and the Great Smoky Mountains National Park.
Earthquakes are areas that are little more predictable to know if you need the coverage or not. Areas that are on or near a fault line are more likely to need this coverage. Some faults are more likely than others and carry more risks. Also, with the growing popularity of fracking technology to dig for oil in some areas of the country, earthquakes are now appearing much more frequently and in areas that are not near a fault line. If this type of technology is being used in your area, it is something you should speak with your insurance agent about in order to properly protect your business.
Floods are another type of natural disaster that should be prepared for. In most communities, if you live in or near a flood zone you are required to carry coverage. These are not the only businesses who would be wise to purchase this coverage. The damage from floods can be far-reaching and in many cases it can cause a business to close its doors permanently.