Insurance Commercial Coverage
5 Coverages You Need in Your Commercial Insurance Policy Before Hurricane Season
Each year property owners in Texas expect the winds from the Gulf of Mexico to blow in from June 1 through November 30, hurricane season. This summer we are expecting to have multiple hurricanes blowing through so it pays to be prepared. At the hardware stores we can find a shortage of tarps, boards for windows and generators as folks prepare for the expected storm season.
It’s important to protect your property, both inside and out. This post will focus on the 5 things to look for in your commercial property insurance policy before hurricane season.
Wind Coverage
If your business is on the Texas coast or in Harris County on Galveston Bay, your commercial property insurance policy more than likely excludes coverage for hail and wind damage. The Texas Windstorm Insurance Association (TWIA) provides wind and hail coverage for coastal businesses. TWIA coverage can be purchased from local insurance agents. If your business is located in a flood zone, TWIA may not sell you wind coverage until you purchase flood insurance first. For TWIA coverage, check out: twia.org or call 800-788-8247.
2. Inland Marine Coverage
Businesses use property that isn’t typically covered in the standard commercial property insurance policy. To keep Business Use property covered, owners need inland marine coverage. Inland marine coverage protects business property that is kept inside the business. Here is a shortlist of inland marine coverages:
Computers
Valuable Papers
Accounts receivable
Contractor Equipment
Property held for others
Property in transit
Fine art
If you utilize any of the items listed in your business, call your agent and add the coverage. You will be glad you did.
3. Crime Coverage
Crime is on the rise so make sure your business is protected. We can’t avoid being hit by a crime wave, but we can definitely protect our businesses from criminals. Burglar bars, security systems, alarms and guards may prevent crime, but when it happens, you need your policy to protect you from a significant loss.
Here are a few crime coverages to consider:
Safe Burglary (cracked or stolen all together)
Money & Securities (securities that insure the money)
Cyber Crime
Forgery
Employee Theft
Document Alteration
4. Flood Insurance
At the top of our list is wind and hail coverage. Flood insurance may be applicable if your business is located in a flood zone. Even when you are not in a flood zone, it’s a good idea to consider a flood policy. Many Texas businesses were flooded during Hurricane Harvey and they weren’t in a flood zone. Again, better safe than sorry. You have a couple of options for flood coverage. You can shop around or get flood coverage from the National Flood Insurance Program. For flood insurance coverage offered by the federal government visit: FloodSmart.gov.
Please be mindful that there is a 30-day waiting period before your flood policy kicks in. Now is a good time to add it if you don’t have it already.
5. Business Interruption
When disaster strikes, your business can suffer from a temporary shut down. When it’s hard to make payroll, employees can quit if the shut down lasts too long. If you are a small business owner you need to maximize your business interruption coverage. Business interruption coverage pays for the money your lose if your business cannot continue normal operations due to damage or closing down. After the global pandemic, insurance companies tightened the coverage on business interruption. Make sure you read the fine print, a COVID like shut down, may be specifically excluded.