Preparing for Natural Disasters: Is Your Business Covered?

Natural disasters such as hurricanes, wildfires, floods and earthquakes can lead to property damage, operational downtime and financial strain. While physical damage is an obvious concern for businesses, indirect costs such as lost revenue, supply chain disruptions and temporary relocations can also take a heavy toll. Having the right insurance policies in place can significantly improve recovery efforts.

Is My Business Financially Protected After Natural Disasters?

Many business owners focus on property insurance but may overlook policies that address the broader financial impact of a disaster. Even if your building and equipment are covered, unexpected expenses like temporary closures, supply shortages and employee displacement can create financial burdens. Reviewing your policy details is critical to determine if you have sufficient coverage to handle a disaster’s direct and indirect consequences.

What Types of Insurance Should I Get to Prepare for Natural Disasters?

To reduce risk and keep your business running smoothly after a disaster, consider these essential policies:

• Commercial property insurance may cover physical damage to buildings, equipment and inventory caused by storms, fires, earthquakes and other covered perils.

• Business interruption insurance may help replace lost income if your business must shut down temporarily due to a covered event.

• Extra expense insurance may cover additional costs needed to resume operations, such as renting a temporary location or expediting repairs.

• Flood insurance may cover damage to your equipment, inventory and other business property after a flood.

• Earthquake insurance may cover damage caused by seismic activity, which is not typically included in general property policies.

It’s essential to review your existing policies and consider additional coverage options to strengthen your financial preparedness for natural disasters. Taking action now can significantly affect how quickly and effectively your business recovers.

Learn More About Business Insurance

Need more information on business insurance? Get clear answers from Foothill Insurance Agency. Our licensed agents can explain your coverage options and help build your ideal policy. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.