Earthquakes can shake the foundations of your business. You need commercial earthquake insurance.
Commercial property insurance may not cover earthquakes.
You might not know this, but your commercial property insurance may exclude earthquake damage from your policy. This means you will need additional coverage for earthquakes to help make sure you’re protected. You’ll want to consider commercial earthquake insurance, especially if your business is located near a geological fault line, where many earthquakes tend to occur. Standard commercial earthquake insurance usually covers damage to your building and your business property, such as damaged inventory or equipment.
Earthquakes can interrupt your business operations.
Earthquakes tear apart neighborhoods, resulting in cracked and broken roads, downed power lines, landslides, and fires. All of these factors, including any damage your building sustains, can force your business to be shut down for days, weeks, or longer. Some earthquake insurance plans offer business interruption insurance which may help you avoid financial difficulties by providing your business with income until you resume your normal operations.
What earthquake insurance doesn’t cover.
It’s important to understand what your earthquake insurance policy probably won’t cover so you know which coverage gaps you may need to fill. For fires and damage to vehicles, you’ll want to look at your commercial property insurance and business auto insurance for your coverage. Earthquake insurance typically won’t cover land damage, like sinkholes or erosion, and you’ll need a separate flood insurance policy to protect your business from water main breaks, tsunamis, or other types of flooding caused by the earthquake. Earthquake insurance commonly excludes coverage for the following:
Your business should consider how to mitigate your risks.
You never know when the next big earthquake could hit and cause devastation to your business, so it’s important to consider how your business can prepare for the worst and mitigate the risks an earthquake poses to it. Risk management services may help you plan for a potential earthquake by examining your current coverage for gaps and then finding coverage to help protect your building, property, and employees. Taking steps to manage your risk may help save you money down the line.
Want more information on commercial earthquake insurance and how it can help protect your business? Contact us to learn more and to go over your coverage options.