Businesses in California face numerous natural disasters, including earthquakes, wildfires, floods, mudslides, and hurricanes. Despite the size of your business, you’re highly likely to be impacted by a natural disaster.
Natural disasters cause substantial losses, including property damage, injuries, or business closure. Interestingly, only a tiny percentage of businesses recover credit to their ability to anticipate unforeseen losses.
They know what to do if disaster strikes and purchase the right insurance plan to finance their recovery. Consider buying insurance from a trusted insurance agency in Northridge, CA, to protect your investment.
Here’s how natural disaster insurance can help a business recover after a catastrophic incident:
Most businesses rely on business premises and equipment to run their operations. In case of a natural disaster like wildfire, most companies lack the financial power to cope with damaged furniture, office buildings, production lines, and vital property required to sustain their operations.
Business property coverage injects the required finances to replace or repair the damaged assets and equipment. With the threat of climate, natural disaster insurance can protect vital business equipment from losses related to wildfires, floods, and hurricanes.
Despite the unpredictable nature of catastrophes, third parties would be less sympathetic towards your losses. For instance, an employee suffered asthma after the building developed water damage following a flooding event.
Subsequently, the sick worker can sue for damages related to medical expenses, lost wages, loss of quality of life, and pain and suffering. Natural disaster insurance can shield the business from using its financial reserves to pay for legal fees and related settlement amounts.
Business interruption coverage replaces lost income in case the business operations halt because of physical loss or damage related to a natural disaster. The coverage lasts up to the end of the business interruption period as determined by the insurance policy.
The coverage also meets the extra expenses related to the additional costs your business may incur to minimize or avoid shutdown. The extra expense coverage includes items such as renting temporary office space or covering the cost of temporary relocation or transportation.
Most businesses transact by using contractual agreements. Unfortunately, a natural disaster makes it difficult to uphold these agreements. So, it is crucial to be aware that contractual agreements require protection from the effects of natural disasters.
Commercial contact coverage can cater for the losses or liability arising from the failure to meet contractual obligations.
Examples of contractual agreements include:
If wildfire guts down your business premises, you may need to close shop during the restoration period. Unfortunately, your internal resources might prove insufficient to make repairs. In addition, the business will continue incurring contractual obligations during the disruption period.
Fortunately, you can shield your business from uncertainties related to a disaster by buying insurance coverage from a reputable provider like Panorama Insurance Agency.
Contact us online to request a free quote.