How Insurance Helps if My Business is Damaged by Severe Weather
Even though we know that it’s difficult to predict the weather, it is possible for your business to be financially prepared for whatever Mother Nature throws at you. Living on the prairies in Canada means that we experience four distinct seasons and a huge range of potentially severe weather events.
From hail and floods to tornadoes and wildfires, weather can cause significant damage to your business – and to your bottom line. Proper business insurance coverage can help cover the cost of property repairs and even help make up for lost commercial earnings if an insured weather event causes you to close the doors to your company for a period of time.
Standard Business Insurance
A helpful and typical Red River Mutual business insurance policy (also called a “commercial” insurance policy) will generally include property and contents coverage on an All Risk basis. This includes coverage for perils such as fire, damage from a break-in at your business location and water damage.
It’s important to note that severe weather events, like floods, aren’t always included in a standard business insurance policy, so it’s a good idea to talk to your local insurance broker to find out if you need additional coverage for your business, depending on your location. If you don’t have a local business insurance broker, you can find one here.
Sewer Back-Up Insurance
Major flooding has many downsides, one of which is when a city’s main sewer system is overwhelmed by excess water, causing it to back up into your business. Not only does this create a mess, but it also poses a health hazard to you, your employees, and your customers. Sewage cleanup should only be done by a professional and can cost anywhere from hundreds to thousands of dollars depending on the size of the affected location. Save yourself a headache and additional costs and inquire about whether your business qualifies for sewer back-up coverage on your business’s insurance policy.
Equipment Breakdown Insurance
Power outages or surges during a storm can affect the electronics, technology, and equipment you need to run your business. Equipment breakdown insurance can help cover the cost of broken or permanently damaged ventilation systems, computers, and other integral systems. This is a handy safeguard for some of the most expensive pieces of your commercial business, especially if the warranty on those items is expired or limited in what it covers.
Business Interruption Coverage
When and if your business sustains damage caused by an insured weather event, you may run into a situation where your business has to remain closed for a period of time. The loss of earnings from a closure can make it difficult to keep up your other business expenses. That’s where business interruption coverage can help.
Business interruption coverage can provide you with a portion of your lost earnings if, for example, a fire causes you to lose inventory, which costs you potential customers. Under business interruption coverage, you may be entitled to reimbursement for the loss of income.
Good Advice in a Stressful Situation
Dealing with sudden damage to your business is a stressful situation. Our Red River Mutual Claims Specialists are there to help you sort out the aftermath of a major loss.
The sooner you get the ball rolling on your insurance claim, the sooner you and your business can start the recovery process. You or your businesses insurance broker can report a claim to Red River Mutual over the phone or by filling out our online claim form.
Once the report has been made, one of our Claims Specialists will be in touch with you to guide you through the process of getting your business back to normal. Try to be as detailed as possible during the initial contact. You will be asked to describe what took place and the resulting damage (as best as you can). Start a helpful list of all of the lost or damaged possessions you can recall. Photos and video of the wreckage can help service and verify the claim, but only attempt to gather footage if it is safe to do so. Other solutions involve trying to protect the property from further damage by putting up tarps and boarding up windows and doors while the business is closed.
You will have paperwork and receipts to keep track of during this process. Ensure you keep them accessible so you can provide them to your insurance Claims Specialist when needed.
Know Your Policy
Your Canada business insurance policy is a helpful, important tool to get you back on your feet after a devastating event. Knowing what your policy includes before you need to use it will help put your mind at ease if you ever have to make a claim.
In the event that you have to make a claim on your business’s insurance policy, ask questions if there’s anything you don’t understand. Your insurance Claims Specialist is there to help.
All of Red River Mutual’s Commercial Insurance Packages come with more than $1 million in available extensions. Get in touch with a broker today to learn more about our specialized commercial insurance policies.