Disasters happen, forcing businesses to temporarily close and drying up revenue streams in the process. But expenses continue…and often rise significantly.
Preparing for disaster with an adequate insurance plan for your Commercial Property prompts the review of your business continuity strategies and recovery plans. Commercial Property Disaster Insurance is an essential part of a company’s blueprint for survival.
Disaster Survival Coverage
Following a major loss, there are lots of things that a business can do without, but revenue isn’t one of them. Most businesses underestimate the amount of time it takes to return to normal operations and costs can increase exponentially over time. Consider the following:
“Each year disasters such as floods, hurricanes, tornadoes and wildfires force thousands of businesses to close. But even more common events, such as building fires, cause the same result. Our research shows that at least 25 percent of those businesses that close following events such as these do not reopen.” (Institute for Business & Home Safety)
Commercial property insurance rates continue to increase significantly as a result of industry and environmental factors, with catastrophe-exposed buildings with losses experiencing possible rate increases in the double digits.
Ways to Reduce Risks and Costs
While you can’t control all of the factors affecting commercial property rates, there are concrete steps you can take to help prevent risks and reduce costs.
Get the commercial property coverage you need
With costs on the rise, it’s critical to regularly review and adjust, if necessary, property insurance limits. Keeping values current can protect your business by providing the right amount of coverage to rebuild should a loss occur.