The Shadow
RICHMOND, Va. (VR) — Natural disasters like hurricanes and flooding can inflict serious damage on businesses, leading to closures or disruptions in operations that may last for days, weeks or longer. Sometimes the damages to a business caused by a natural disaster are irreparable and force the company to close. No business is immune to the effects of a natural disaster. Even disasters that take place far away can impact a business by disrupting supply chains and communications.
The State Corporation Commission’s Bureau of Insurance encourages business owners to assess their natural disaster risk, review insurance coverages regularly, and adjust as needed to ensure their business can successfully return to normal operations after a disaster. Business owners should understand what their insurance policies cover and how much coverage may be needed to make repairs and minimize disruptions.
Don’t wait until it’s too late – contact your insurance company or agent now if you have questions about coverage or filing a claim.
A commercial insurance broker is an available resource to business policyholders. These professionals can provide tips and guidance that may help insured business owners navigate the natural disaster challenge and properly prepare for it. For example, a broker may have resources available to assist their insureds with mitigating exposure and managing risks. Contact your insurance company to see if this is available.
The Bureau offers the following tips for business owners to help get things running again after a natural disaster:
- Assess your risk for certain types of disasters such as fires or floods.
- Have disaster and business continuity plans in place that include things like a communications plan, employee contact information, backup vendors or suppliers, a temporary relocation site and procedures for work processes and payroll.
- Review insurance policies and ensure insurance coverage is adequate and up to date.
- Know how to respond if disaster strikes.
Take time to educate yourself on what insurance policies cover and consider the following:
- What are the insurance deductibles, coverage limits and exclusions?
- Do you need additional or separate coverage for events like floods or earthquakes, which are not usually covered by standard business insurance policies?
- Do you need a separate auto insurance policy for business vehicles?
- Are your business and its contents insured for their current replacement cost?
- Do you need business interruption insurance to cover loss of income that your business may suffer after a disaster?
The following are additional steps businesses can take:
- Share business continuity plans with employees and hold disaster-simulation exercises.
- Keep preparedness items – provisions, maps with evacuation routes and access to a working radio and mobile apps for emergency information – onsite at your business.
- Compile and safely store an inventory of business assets and equipment (including computer hardware). And back up all personal and company data regularly in case of a loss during a disaster.
- Keep physical copies of important records (such as building plans, insurance policies, bank accounts and employee contact information) in a secure, waterproof and fireproof place.
The Bureau offers free consumer guides specifically geared to businesses. To learn more, visit the Consumer Services Section of the Bureau of Insurance Property and Casualty Division online or call toll-free at 1-877-310-6560 or in Richmond at 804-371-9185.
For additional emergency preparedness information relating to disasters, visit vaemergency.gov.
