While no business owner can fully predict what will happen to their company - either from a financial standpoint or if an unexpected emergency will occur - it's important to be prepared. Without comprehensive risk analysis or working with commercial insurance specialists, decision-makers could find themselves with a costly cleanup.
According to a Property Casualty 360 article, companies should guarantee that they have an insurance policy that is all-inclusive for unexpected events as well as day-to-day functions. Furthermore, it's too common of a practice for organizations to renew policies without having a thorough assessment of their daily needs.
Neil Harrison, group managing director for Aon Global Risk Consulting, explained to the source that post-event is not when businesses want to see if their system works.
"None of us are really smart enough to really step back and say exactly what could happen, but there are some common themes [to think about]," Harrison told the news source. "Impact on business, technology, operations, people, processes and within each of those five core areas, somewhere there are some recurring best practices that feed in together."
For example, Reuters reported that Hurricane Sandy is the second-costliest catastrophe in U.S. history, with insured loss estimates as high as $25 billion. The costliest catastrophe was hurricane Katrina in 2005. Businesses that find themselves in areas that are subject to certain kinds of storms need to account for that type of coverage.
With commercial property insurance, companies across multiple industries will be able to rest assured that they are covered for a number of situations. Additionally, as technology continues to evolve, businesses need to account for data breaches, an aspect that might not have been fully accounted for in earlier policies. Updating coverage is essential to keep organizations thriving in the long-term.