Why Commercial Insurance Is Needed for Bad Weather, Hurricanes, and Other Unforeseeable Events

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Last updated on: December 23, 2022

Running a business has unexpected costs. One area which should not be overlooked is purchasing commercial insurance policies for unexpected events such as natural disasters, weather events, and acts of terror and mass violence. In 2021, there were over 400 natural catastrophes all around the world, leading to a loss of upwards of $260 billion dollars. According to FEMA (the Federal Emergency Management Agency) 40% of all small businesses close because of damage from natural disasters.

Alchemy Insurance is ready to provide the best combination of commercial insurance quotes for your company based on the types of unforeseen events that are likely to occur in your area.

Natural disasters and weather events exact a high toll measured in loss of life, injuries, and property damage. High winds occur in all the states in the US and might be anywhere from 60 to 100 miles per hour. These winds are most likely to occur in places where severe thunderstorms are common, the Great Plains, the Midwest, and the south. These are the same places that are likely to see damage from tornadoes and hail as well. Approximately 10 percent of the 100,000 thunderstorms each year are severe.

Hurricanes also cause damage from high winds, but they also bring flooding from rain and storm surges. The states along the Gulf Coast and the East Coast are most likely to be affected by damage from hurricanes. Flooding occurs in all 50 states and results from rain, snowmelt, thunderstorms, hurricanes, and other wet weather events. Winter storms with mountains of snow or deposits of thick ice can cripple businesses because of power outages and failing roads and bridges. Flooding is covered under a separate kind of insurance than other kinds of damage to property. It covers water that enters from ground level. Commercial flood insurance is managed through the National Flood Insurance Program, which offers building coverage and business property coverage.

In the wake of major hurricanes like Sandy in 2012 and Katrina in 2005 many small retailers and restaurants were forced to close due to business losses. Small businesses lost merchandise and property. Those that were able to stay open suffered business interruptions due to supply chain problems, the inability of customers to reach the shops, power outages, and other impediments. Larger companies tend to be better prepared for these types of difficulties with various commercial insurance policies to see them through the challenges. Alchemy Insurance is ready to help find the best casualty, property, flood, and business interruption insurance plans for your company.

Of course, Californians are experienced with earthquakes, though all 50 states have reported earthquakes, and Hawaii is most familiar with volcanoes, though the Mt. St. Helens eruption in the 1980s is a reminder that preparation for the unexpected is essential. Like flood insurance, volcano insurance is a separate kind of insurance for those who live in areas prone to lava flows, and earthquake insurance is separate from property insurance. Businesses in earthquake- and volcano-prone areas should invest in commercial insurance policies that will cover these specific needs.

Unfortunately, terrorist attacks and incidents of mass violence are realities that U.S. society faces and that affect businesses. These events damage infrastructure and buildings, harm people, and cause losses in the stock market. Unfortunately, insurance policies do not always pay for claims due to terror attacks. Therefore, business owners should have layers of other commercial policies in place to cover damage to people and property.

Trying to sort through what kinds of insurance your corporation needs can be overwhelming, but Alchemy Insurance is your best choice for a commercial insurance broker to figure out which policies will best cover the unexpected events that may challenge your business.

Depending on the location of the company, a selection of the following types of commercial insurance policies may be appropriate:

Alchemy Insurance gathers data from all the major insurance companies to help provide the best combination of policies for your business. Navigating the commercial insurance policy landscape can be confusing, but Alchemy will consider the size, type, and physical location of your business to create a plan for the best commercial insurance coverage.

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