Wind damage can be a significant threat to businesses, especially in areas prone to storms, tornadoes, and hurricanes. Business owners need to understand whether their insurance policy covers wind damage and what limitations may apply.
Does Standard Business Insurance Cover Wind Damage?
Most commercial property insurance policies include wind damage coverage. This means that if strong winds cause structural damage to your business, such as roof damage, broken windows, or destruction of outdoor signage, your policy should help cover repair costs. However, coverage details vary, and it's essential to review your policy’s terms and exclusions.
Are There Limitations or Exclusions?
While many business insurance policies cover wind damage, certain limitations may apply:
- High-Risk Areas: If your business is in a hurricane-prone region, your policy may have a separate windstorm deductible, which is typically higher than the standard deductible.
- Named Storm Exclusions: Some policies exclude wind damage caused by named storms (e.g., hurricanes) unless you purchase additional coverage.
- Roof and Maintenance Requirements: Insurers may deny claims if they determine that poor maintenance or pre-existing conditions contributed to the damage.
Do You Need Additional Windstorm Insurance?
If your standard policy excludes or limits wind damage, you may need:
- Windstorm Insurance: A separate policy specifically for wind and hail damage, often required in high-risk coastal areas.
- Business Interruption Insurance: If wind damage forces your business to close temporarily, this coverage can help cover lost income and ongoing expenses.
What Should You Do After Wind Damage?
If your business experiences wind damage, take these steps:
- Document the Damage – Take photos and videos as proof of your insurance claim.
- Mitigate Further Damage – Make temporary repairs (such as covering broken windows) to prevent additional losses.
- Contact Your Insurance Provider – File a claim as soon as possible and provide all necessary documentation.
Conclusion
Most standard business insurance policies cover damage from wind, but there may be limits, especially in places with a lot of wind damage. Business owners should look over their plans and, if necessary, think about getting more windstorm insurance. Knowing what your policy is can help keep your business from losing money on wind-related disasters when you least expect it.