How protected is your small to medium-sized business? In the case of flooding, being located on higher ground might be helpful, but on the off chance that water breaks through, does your commercial property insurance account for such an event?
Company owners likely want their firm to be successful for several years, perhaps even decades. To ensure this, the right business insurance policy—or set of policies—needs to be purchased.
According to the Federal Emergency Management Agency (FEMA), 40 percent of small businesses do not reopen after experiencing a natural disaster. Of the companies that do bounce back, 25 percent of them close within one year.
Tony Pica, a Capital One Bank executive explained to the Milwaukee-Wisconsin Journal Sentinel that natural disasters pose threats to small business' sustainability and survival. One storm could create billions of dollars worth of damages and force too many companies to close, he said, adding that owners' optimism levels are on the rise.
"However, we don't want these businesses to undermine their chances for long-term success and growth by being unprepared," he said. "It is essential for local businesses to be ready when disaster strikes – whether it's a fire, hurricane or tornado."
The Washington Post highlighted several tips for small businesses in a recent article, including the fact that there needs to be open communication with employees. Workers must know the details of all emergency plans, including contact information for managers, vendors and even insurance companies.
Commercial insurance specialists can help firms find the best coverage for daily operations as well as location-specific issues. Only when all scenarios have been accounted for can owners rest assured they are protected for the long-term.