Businesses need to be protected from natural disasters just as residential homes should be. When a business is damaged by a disaster, such as a flood, it can cause catastrophic effects. A flood can damage a business’ property, causing it to close for a period of time while it is being fixed. A flood also has the ability to damage the goods that are inside of the business. This can cause more loss to the profits that the business could have obtained. Damage from a flood may not be covered under regular insurance plans. It is important for business owners to look over their plan thoroughly to ensure they have proper coverage. For most plans, damaged caused by floods are not covered. This means that a business should seek an additional plan that can cover damage that is caused by a flood. By obtaining this insurance plan, it may help in the long run when these unexpected situations occur.
If your commercial property is located in a flood zone and you have a federally-backed mortgage, you may be required to obtain flood insurance. Although this coverage may not provide for damage outside of the building, such as a vehicle, it can provide coverage for damage to the structure. With this kind of coverage, it may be able to help your business recover faster. This will allow you to open your store to the public quicker and to gain profit from customers sooner.
What is business interruption insurance?
As we all know, natural disasters can have devastating effects on communities. Floods can cause damage to homes and businesses in an area, causing people to evacuate. When businesses are damaged by these floods, they may have to close their doors to the public. This may be required while they clean up the damage and fix it. When this occurs, they may be able to have comfort knowing they have business interruption insurance. This form of insurance bridges the gap that is caused between the devastation and a full recovery. This may be able to help out business owners while they are unable to make a profit since their business is closed. A business interruption insurance plan can cover income loss during and after a forced shutdown of a business. This may be able to protect the company from permanent closure after a disaster.
The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.