Is your business ready for hurricane season?
Do you own a business on the eastern seaboard of the United States? If so, then you should know that hurricane season started on June 1. Is your business financially prepared for a hurricane?
If you’re like most small-to-medium sized business owners, then you probably don’t have the capital to rebuild from scratch if a hurricane comes along and blows away your business. That’s an extraordinary, and unusual, expense item not in your budget.
However, a hurricane doesn’t have to completely destroy your business for its effects to be noticed. After a hurricane, you might see that your business is still standing, albeit in three feet of water. You’ll spend a lot of money repairing that kind of damage.
Alternatively, a hurricane could cause a power outage that could last for days or weeks. Can your business afford to lose revenue for that length of time? For most small business owners, the answer is “Probably not.”
Even if your business is not directly affected by the hurricane, it could still be indirectly affected. It’s possible that your suppliers were blown away when the storm made landfall. Without those suppliers, you’ll be unable to operate your business.
Hurricanes can cause severe damage to property
These Are Risks
All of these scenarios are “if” scenarios. It could be the case that one or more of the situations described above could affect your business. It’s also possible that your business, even if it’s on the east coast, might never be affected by a hurricane.
That’s why the threat of a hurricane is classified as a “risk.” It’s not definitely going to happen, but if it might happen. It’s a threat faced by your business.
However, even though it’s a risk, it’s not a risk that you want to assume on your own. You can transfer that risk to an insurance company with quality property insurance. That way, when a storm hits and causes damage to your business, your insurance company can pay for that damage so that you don’t have to pay for it out of pocket.
Also, you can be reimbursed for loss of business as a result of the hurricane. As noted previously, a storm can cause a power outage that can last for an extended period of time. You can purchases insurance that will reimburse you for the amount of lost business incurred during the power loss.
If you operate a business on the east coast, you’ll want coverage for the threat of a hurricane. Be sure that you purchase quality property insurance so that if a storm hits, your business won’t take a financial beating.