Help Protecting Your Business from Weather Damage – Ocala Insurance Agency

Courtesy of iii.org

Courtesy of iii.org

It is an above-average hurricane season forecast provided by Colorado State University this week, businesses should take steps to prepare and increase their chances of survival, according to Insurance Information Institute (III).

40 percent of businesses never reopen after a disaster and another 25 percent fail within a year, according to the Federal Emergency Management Agency (FEMA). But by taking action now to prepare, businesses can increase their chances of returning to the economy and keeping their doors open.

III is Insurance Institute for Business & Home Safety (IBHS) recommends the following:

Develop a Business Continuity Plan

Having a business continuity plan is essential for companies to prepare, survive and recover from hurricanes. Use IBHS’ for free OFB-EZ® (Open for Business) a business continuity planning tool to create a plan that focuses on recovery after an emergency response. Share your plans with employees, assign responsibilities and provide training so that employees can help restore your business. Conduct regular testing to evaluate and improve feedback.

Store Large Remote Data

In order to get your business up and running quickly in the event of a disaster, you need to know a lot about business. In addition to backing up computer data, backup other important information such as your insurance, bank details and phone numbers of employees, key customers, vendors and suppliers, your insurance experts and others. If you have a storage facility, make sure it is far away from the same dangers that threaten the original facility. Use IBHS’ for free EZ-PREPTM Emergency preparedness for severe weather is a preparedness and response tool that contains customizable checklists to ensure your company has a well-prepared plan and is ready to respond in the event of an emergency.

Build Business Inventory

Include all business equipment, supplies and merchandise—and don’t forget commercial vehicles.

Review Your Insurance

Time to review your insurance policy is already A disaster has happened and you have to make a decision. It is important that your business has the right insurance and type of insurance for its needs and risk profile. There are two types of policies you can purchase as a business owner:

A Business Owner Policy (BOP) they are often used by small businesses. BOP policies combine assets and liabilities into a single policy and are often less expensive than a business plan.

A Commercial Multi-Peril (CMP) a plan combines several things – such as commercial property, loans, oceans and commercial vehicles – into a single plan. It is cheaper to buy a CMP plan than to buy the covers individually.

Select the Exchange Rate

Most commercial real estate policies offer cash in lieu, real estate value, or a combination of both. Repayment fees will be paid for rebuilding or renovating the property, based on current construction costs. The actual interest will pay to rebuild or replace the property to remove decrease. Depreciation is the loss of value due to wear and tear or age. If your business is destroyed and you only have real money, you will not be able to rebuild it.

Consider Tenant Value

If you rent or lease a home, consider rent protection, which will insure your property, including machinery, furniture and merchandise. Landlord’s regulations may not cover your property.

Don’t Forget About Flood Insurance

Flooding is not covered by commercial insurance policies, so consider purchasing a separate flood policy. If you are in a flood risk area, you can protect your business from financial losses. Marketing flood study is available from National Flood Insurance Program (NFIP) and provides up to $500,000 for construction and $500,000 for contents. You may also be covered by special insurance policies.

Go to Business Insurance Section of page III for more information.

RELATED TO IT

Facts and Figures: Disasters

Notes: When Disaster Strikes: Preparation, Response and Recovery; Does My Business Need Flood Insurance?

STEPS:

Colorado State University

Insurance Institute for Business & Home Safety

National Flood Insurance Program

National Hurricane Center

Weather Forecasts

Small Business Administration