“Weathering the Storm: Insurance Coverage for Risks Posed by Natural Disasters"

Brandon Clapp authored an article published by Business Alabama on August 28, 2018, discussing the risks posed to Alabama businesses by potential weather-related natural disasters, as well as what businesses owners should do to protect themselves before disaster strikes. According to a 2013 study by the American Sustainable Business Council, natural disasters are particularly devastating to small and mid-size businesses, with one quarter of those businesses hit by catastrophic storms never reopening. The study also estimated a daily loss of $3,000 for small businesses that remain closed following a major weather event.

With this information in mind, Alabama businesses should take care to take proactive measures, ensuring their insurance policies meet their risks and expectations. This type of insurance coverage for natural disasters is available through many common insurance products, though these can depend on the nature of the loss. These coverages pertinent to natural disaster damages include:

• Physical Loss or Property Damage
• Debris Removal
• Extra Expense Coverage
• Business Interruption Coverage
• Contingent Business Interruption
• Civil Authority Coverage
• Service and Utilities Interruption Coverage
• Builders Risk Insurance Coverage

“As we have all been reminded over the past decade, disasters will happen,” said Clapp. “With this realization, Alabama businesses should consult with their insurance and legal advisers to identify the most appropriate insurance products for their business risks.”

For the full article, please click here.