Earthquake Insurance for Small Businesses

Is your small business prepared for an earthquake?

Natural disasters hit when least expected, bringing devastating effects. Earthquakes, in particular, leave a trail of destruction, including flooded stores, damaged walls, total loss of stock, and disruption of supply lines.

Typically, small businesses lack enough resources to recover quickly from such disasters. So, in addition to physical damage, an earthquake can lead to long-term financial distress or even closure.

Even so, a small business with the right insurance package can shield itself from the effects of the earthquake. If you’re looking to protect your business from the impact of the next earthquake in California, consider acquiring commercial insurance coverage. 

Potential Loss From Earthquakes

According to the National Geophysical Data Centre, the largest earthquake in US history struck Alaska in 1964, resulting in more than $500 million in property losses.

Closer home, the costliest earthquake occurred in Northridge, California, in January 1974, resulting in a $15.3 billion estimated insurance loss.

The estimated losses include the following:

1. Repairing and replacing buildings
2. Loss of income, e.g., business interruption, rental income, and wage loss
3. Inventory
4. Business interruption

How Earthquake Insurance Works

As you shop for an earthquake insurance plan, consider the coverage options available. Look out for crucial components like building coverage, content coverage, and business interruption coverage.

For instance, as the business attempts to recover from the effects of the earthquake, business interruption coverage will inject cash to pay your bills, replace lost income, or cover your payroll.

It’s also worth noting that a standard business insurance plan doesn’t cover earthquakes. You may therefore need an endorsement or tailored coverage to your current insurance plan.

How Much Does an Earthquake Insurance Plan Cost?

The cost of earthquake insurance depends on several factors, like coverage limits, business size, location, and building age.

When an earthquake occurs, there’s a high chance it will cause costly and catastrophic damage to your business.

Therefore, despite the cost of the premium, it’ll afford you peace of mind in case an earthquake destroys your business.

Factors to Consider When Choosing an Earthquake Insurance Plan

Take your time to select the right insurance provider because it’ll directly impact your business. You’ll enjoy valuable benefits like faster claim processing, prompt service delivery, and value for your money.

Here are a few tips to consider:

1. Type of coverage— Go for a plan that mirrors your business risk
2. The amount of deductible— Look for a deductible you can afford in the event of a claim
3. Policy limits— The policy limit should cover the potential losses faced by your business
4. The reputation of the insurer— Work with an insurer that pays on-time claims and fairly

Speak with an Experienced Earthquake Insurance Professional

An earthquake can lead to massive destruction of business property. For instance, a severely damaged wall or business furniture means you cannot open your door to customers leading to a loss of revenue and customers.

Consider working with an experienced earthquake insurance provider like Panorama Insurance Agency. Our team of experts can review your risk factors and recommend a suitable earthquake insurance plan near Northridge, CA.

Contact us online or call us at 818.781.6630 to get a free quote.