Understanding All-Risk Policies
Unless very clearly excluded, an all-risk insurance policy covers a broad spectrum of hazards. Although it provides general defense, some calamities like floods or hurricanes could have restrictions or exclusions. Many companies choose an all-risk approach since they believe it covers everything; however, with regard to particular hazards like hurricanes, there could be gaps. Enough protection depends on knowing whether your policy covers damage associated with hurricanes and whether you can get extra coverage.
Incorporating Flood and Wind Coverage
Among the several problems hurricanes can bring are those connected to floods and winds. Although an all-risk policy might pay for certain hurricane damage, coverage for floods and windstorms is usually restricted or excluded. For example, typically obtained through the National Flood Insurance Program (NFIP), flood insurance normally calls for a separate policy. If your company is in a hurricane-prone area, you should find out if your present coverage addresses windstorm damage. If not, you may usually guarantee complete coverage by adding separate windstorm insurance or windstorm endorsements.
Business Interruption Coverage
Dealing with hurricanes takes great thought on how a disaster can affect your company's operations. Business interruption insurance is essential to guarantee you may recoup lost income from storm-related downtime, even if your property is protected from physical damage. While some all-risk policies provide minimal business interruption coverage, this could not be enough to offset losses resulting from damages connected to hurricanes. Particularly in high-risk areas, you might want to add an endorsement to expressly cover business interruption connected to hurricanes.
The Value of Examining Your Policy
Every owner of a business should carefully go over their all-risk policy to find holes in hurricane coverage. See your insurance agent to find out whether further riders or endorsements for risks connected to hurricanes are required. In hurricane-prone regions, many insurers offer specialized packages that incorporate windstorm and flood insurance. Frequent policy updates help to reflect the present risks of your company so that, should a calamity hit, you are not inadequately insured.
Conclusion
Although all-risk insurance covers a lot, your company may need particular hurricane-related endorsements such as windstorm and flood protection. Making sure your company stays safe throughout hurricane season depends on routinely assessing your insurance coverage with an expert.