Insurance for your Small Business that protects you from Earthquake, Flood, and other Disaster

Protect your business from going under after a loss or injury to personnel, damage to the workplace including your equipment or furnishings, or loss of income.

How prepared is your company for a disaster? While you may have taken steps to put together a “personal” emergency plan or bugout bag, have you taken the extra steps to protect your business?

It is estimated that 30-60% of all businesses never reopen after a disaster strikes. Taking precautions now can help protect your business from closing its doors in the future. And depending on the last time you checked, the insurance is cheaper than you think!

According to the SBA (the Small Business Administration), it’s imperative to prepare your business for disaster. Ask yourself…

What business disaster plan have I implemented? A business disaster plan helps reduce future costs and boosts a quick recovery.
Am I informed and educated on business disaster strategy? Understand what tools and resources are available before a disaster strikes.
Have you tested your disaster preparedness strategies? Know how long it takes for your business to recover from a disaster. Test your strategies prior to the disaster.
Do you understand your Commercial Property insurance coverage? If you haven’t looked at your commercial insurance policy lately, perhaps now is a good time to do so. Disaster coverage, such as floods, earthquakes, tsunamis, volcanoes, landslides, mudflows, or even full coverage for dealing with sinkhole collapse, are typically not covered under traditional Commercial Property insurance policies. It’s worth considering adding this type of disaster coverage with an Earthquake-Flood-DIC policy.

Earthquakes, Tsunamis, Mudslides and Sinkholes. Experts warn that the Pacific Northwest is long-overdue for an earthquake, coined the “Big One.” Caused by a significant shift in the Cascadia Subduction Zone, not only could the area experience damage from the earthquake but from coastal tsunamis as well. Damage could be catastrophic to businesses and homeowners all the way from California to Alaska. In addition, mudslides from steep terrain and saturated layers of soil could further devastate the region. With accelerated energy and other natural resource exploration and production, the likelihood of uncovered sinkhole collapse and significant remediation cost increases. Unfortunately, most businesses won’t have adequate Commercial insurance to recover.

Flooding and Surface Water. Heavy rains and flooding are common in the Pacific Northwest, causing significant flooding and surface water backup on our streets and into our businesses. Check your Commercial insurance policy, as most do not cover surface waters or flood.

Volcanoes. With the volcanic Cascade Range at our doorstep, you may be surprised to learn that Alaska has 98 active volcanoes, Oregon has 42, Washington has 16, and California has 21. In 1980, Mount St. Helens was one of the largest volcanic eruptions ever recorded. It caused over $850 million in damage, and 90 people died. Extensive damage to businesses and homes was caused by volcanic ash (the cost to remove the ash was not covered) and lahar flows (volcanic mudflows). Review your Commercial Policy today to determine if you have adequate coverage.

From “Beauty from the Beast: Plate Tectonics and the Landscapes of the Pacific Northwest,” by Robert J. Lillie, Wells Creek Publishers, 2015.

What to do BEFORE disaster strikes?

ABI’s experienced insurance agents can assist you in reviewing and understanding your current Commercial Property insurance policy, and help you determine which disaster policies best protect your business. For example, a Difference in Conditions (DIC) policy could help provide coverage for disasters not included in an organization’s regular policy. Our agents will guide you through policy deductibles, and the limits (and limitations) of competing coverage options.

By not having adequate coverage for disasters, you may experience both direct and indirect costs, such as loss or injury to personnel, damage to the workplace including your equipment or furnishings, or loss of income, all of which may force you to close your business. ABI works across nine states with multiple carriers to provide you the broadest disaster coverage and best policy terms at the lowest premium costs. Call us today to plan your disaster preparedness strategy.