Why does my business' location matter for insurance?

Location might be crucial for real estate, but it is just as important for business owners across numerous industries. Insurance policies can be catered to account for intricacies of a company that are not always immediately considered.

California-based companies know that they will not be affected the same ways as New York businesses when it comes to hurricanes. However, location-specific issues are crucial to any organization. According to a new report by Lloyd's of London, long-term average tornado losses are on par with that of hurricanes - further proof that owners must account for the area in which they are based.

"With urbanization creeping into formerly rural areas, tornadoes are more likely to hit densely populated areas and cause more damages, as evidenced in the increase in the number of billion-dollar events," the report said.

Furthermore, annual aggregate losses from severe thunderstorms - tornadoes included - account for more than half of all catastrophe losses since 1990. Most of the affected losses were in property damage, agriculture and motor vehicles.

For example, if a business that relies on delivery services has recently expanded into a more rural area, there are new considerations. Commercial auto insurance would be a wise investment if drivers are going to be consistently on the road. Personal auto policies will not offer the same coverages for accidents that happen on a company's time.

To that same effect, the new location could be subject to different weather conditions than the business' main building that resides on a downtown urban street. Tornadoes are not necessarily a severe risk for high rises, but they are more common in open areas.

Commercial property insurance policies can be as unique as the companies in which they cover. With that in mind, business owners should not hesitate to work with commercial insurance specialists to find a plan that is suited for their organization's short- and long-term needs.




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An InterWest Insurance Services LLC Affiliate

40169 Truckee Airport Rd. Ste #203
Truckee, California 96161
Phone (800) 579-6369
Fax (530) 582-6007
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