What to Do in a Policy Review
Scheduling regular policy reviews can ensure your business has enough insurance to survive a disaster. Here are a few action items to consider when filling out the insurance portion of your business continuity plan:
- Review your current coverage with your insurance agent. The policy should be tailored to your business and take into consideration not only property damage but loss of revenue and extra expenses that occur when a disaster causes a temporary shut-down.
- Ask a lot of questions. Make sure you understand the policy limits, the deductible, and what is actually covered.
- Consider business owner’s insurance. The business owner’s policy (BOP) is a standard insurance package of coverages that a typical small or medium-sized business would need. In addition to covering your property, it includes general liability protection and business interruption insurance, which provides money to offset lost profits or pay operating expenses the business could have covered if the disaster had not occurred.
- What about flood insurance? According to the U.S. Geological Survey, floods are the leading cause of natural disaster property losses. Small business owners, particularly those running home-based businesses, should consider getting coverage from the National Flood Insurance Program (NFIP). Most homeowners’ insurance policies don’t cover flood losses. The NFIP also covers business property.
- Know what you own. Inventory your personal and business assets before a disaster occurs. Record the price and estimated replacement cost of furniture, computers, machinery—everything of value at your business. Keep receipts, take photos and video of your property, and store that information at a secure location.
Having the right insurance policies and the right amount of coverage will make a difference when it comes time to deal with the aftermath of any kind of disaster, whether it’s a massive hurricane, or the water-main break in the alley behind your business. For more information, please contact us.
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