It has been an active hurricane season thus far for Hawaii, and there are still three months left in the season. To supplement our prior tips for homeowners in preparing to submit insurance claims after a storm [here], below are some additional tips for businesses.
- Have your insurance policy and other important papers (lease, mortgage, deeds, contracts, etc.) stored so they are accessible after the storm passes. Be familiar with what coverage your policy may provide for storm-related damage.
- Keep records of insured assets.
- Also, have documentation of pre-storm business income in the event a claim for business interruption coverage is pursued.
- Track post-storm costs incurred in protecting property and assets, and for making any repairs.
- Your commercial property policy will likely cover wind damage, but not flood damage. Coverage for flood is typically provided under a separate policy. So it may be important when submitting a claim to distinguish wind damage from flood damage.
- Business interruption coverage may cover more than the costs of having to close your business after a storm. There may be expenses that must be paid even if the business is closed, such as rent. Such expenses may be covered.
- Contingent Business Interruption Coverage covers a business that is not directly harmed by a storm, but suffers loss of a business relationship due to a storm. For example, the closing of a port or airport due to a storm may affect the profits of the shipping company or airlines.
- Ingress and Egress Coverage may be important if roads are closed or mass transportation is not operational, cutting off access to the business.
Your policy may cover additional negative impacts created by a storm. A careful review and full understanding of the policy is important is order to maximize the recovery of insurance proceeds.