If we’ve learned anything from the earthquake and tsunami in Japan, it’s that disaster can strike at any moment. Of course, we should have learned that from the hurricanes that hit Louisiana, and the earthquake in Haiti, and any number of catastrophes that strike very regularly on this earth. Yes, it is hard to prepare for natural disasters. However, there is one thing that is tremendously clear coming out of these things: having the right insurance is absolutely essential.
Unfortunately, studies show that if most small businesses were hit by disaster – flood, earthquake, tsunami, even lightening – they would not be able to recover. Simply put, most small businesses are not covered for disasters on their policy. If they are, they do not actually have enough coverage to reopen. And most business owners and managers think they do have enough.
Do you have the insurance needed to survive a crisis? Find out below, and learn how to get it if you don’t.
What normal insurance doesn’t cover
Even if you have a pretty solid insurance policy, you will have to purchase coverage for most natural disasters separately:
- Volcanic eruptions
Not only will you not get a payout if you don’t have a special catastrophe policy, you will also lose all your income most likely. You need coverage that will replace your income until you and your business can get back on your feet.
Determining what kinds of catastrophe coverage you need should be done in a few steps.
- Find out what risks of natural disaster you have
You can do this by checking with your local or state agency, as well as going to the public library and looking through natural disaster records.
- Individual and umbrella policies
If you are only at risk for one or two disasters, it will be cheaper to get an individual policy for each disaster. However, if you live somewhere that experiences three or more types of natural disaster regularly, you might consider an umbrella policy. You need to distinguish between the two types of umbrella policy: 1) a general liability coverage that protects you from lawsuits in the even of a natural disaster, and 2) coverage for a wide range of natural disasters.
Even if you do get the second type of umbrella policy, you will still need separate coverage for floods.
- Shop Online
Catastrophe coverage can be quite expensive, so you are going to want to spend plenty of time looking around for the best deal. The quickest, most thorough and effective way to do this is to shop online using quotes. Business insurance quotes allow you to use comparison shopping to get competitively priced coverage from top insurance providers. You can also investigate the policy details to make sure you are getting what you need before talking to an agent.
Get covered for man-made disasters as well
Natural disasters aren’t all you have to worry about. Take a look at the nuclear crisis in Japan! You can get business insurance for man-made disasters as well, including crashing planes, wars, and nuclear meltdowns. Get better business insurances today.