In case you haven’t noticed, severe weather is on the rise across the nation and as winter phases into spring, Mother Nature is sounding off the alarms for the spring storms. Without the right insurance, damage from these storms will hit the hardest for small business owners.
Nationwide Insurance recently conducted its annual “Small Business Indicator” survey and uncovered the bulk of small business owners do not have a comprehensive disaster plan. Moreover, about half of those surveyed disclosed that it would require approximately three months for their business to recuperate from a natural disaster.
The survey also found that 71 percent of small-business owners don’t have business interruption insurance. This is crucial to remain in business because approximately 25 percent of businesses don’t recover after a huge disaster and remain closed. Additionally, approximately 21 percent of these owners don’t have a written disaster plan indicating that’s it’s not a huge priority….not a great strategy.
This insurance allows cash flow in case interruptions like wind storm, fire, hail, equipment damage or vandalism. It will also help if a damages drive you to shut down for a small period of time and pay for income losses and ongoing costs.
Most policyholders may not be aware that business interruption doesn’t apply to physical loss to to their property. If your business is without phone, natural gas, water or connection for more than a day, business and utility interruption insurance affords your business the right protection.
This includes the following utility service coverages. As related to time, it will protect your losses, such as loss of expenses and income to a determined time frame or until water service or power is reinstated. As related to damage, it safeguards against property damage as a result from a utility services disruption.
Most small-business owners are not well prepared for natural catastrophes. Disaster can strike at any moment, but a little planning can help keep your small-business humming if and when Mother Nature unleashes its might.