Business strategy for 2017: Plan for 3-day waiting period for business interruption insurance

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During hurricane season, emergency preparedness professionals suggest that people have enough food and water around to last three days. Business owners need to plan for three days on their own, too. But it’s not about food and water; it’s about cash reserves.

One important coverage for a business owner to consider is business interruption insurance. It is triggered due to a slowdown or suspension of a business’s operations due to a covered peril, such as a fire or hurricane. And, it has limitations that must be recognized, with the most important being the typical waiting period of 72 hours before coverage kicks in.

Why is there a waiting period? It exists to lower the cost of insurance coverage and to encourage the business to take necessary, immediate steps to minimize business losses. There are ways to reduce or remove that waiting period, at an additional cost. However, knowing the coverage does not go into effect the moment the lights go out is the first step to planning for it. Many small businesses do not do that. After every natural disaster, they learn about it too late.

Business owners should find insurance coverage that matches their business size, that suits their particular needs, and they must remain confident in their understanding of how a commercial insurance policy works. Now is the time for small-business owners to take a hard look at their risks and make a plan for 2017.

According to the Small Business Administration, 99.7% of all businesses are small. If that sounds surprising, understand the SBA defines “small” as a business with fewer than 500 employees. About 80% of businesses are VERY small, as in under 10 employees. Thinking big is a success strategy as necessary for the sole proprietor as it is for the CEO of a giant corporation. It includes thinking about how to make it through the first 3 days after disaster strikes. With a well-conceived plan, the disaster itself may certainly ruin your day (or month), but it won’t ruin your business.

Don’t want your car stolen? Take the keys!

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Car thieves love Honda Accords. They are also rather fond of the Honda Civic. Both models are ranked as the top two most-stolen cars in America. The fact they are also among the most popular cars has a lot to do with it, of course. The National Insurance Crime Bureau (NICB) keeps track of this data, and there’s quite a lot to keep up with since a car is stolen about every 46 seconds.

Make it a safely scary Halloween

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The trick-or-treaters are coming! You’ve stocked up on candy; have you taken stock of the safety of your property?

It’s great when homeowners spookify their home for the season. But you don’t want to put the scare into Halloween revelers with hazards that may cause someone to go bump in the night on your property– and sue you for the damages.

Matthew Recovery: 40,000 insurance claims so far

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As of this morning, there have been nearly 40,000 insurance claims filed due to damage from Hurricane Matthew. Those numbers will surely rise in the coming days as people continue to find damage to their property related to the storm that hit Florida a mere four days ago.

The Florida Office of Insurance Regulation released Matthew claims data on October 12.  About 90% of the claims were for residential property damage. So far, there have been 1,800 flood claims reported by people with flood policies through the National Flood Insurance Program, and 28 claims for private flood insurance, which is coverage outside the government program.

Matthew hits home

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Hurricane Matthew is slowly advancing up the coast, bringing with it winds in excess of 100 mph and the potential for incredibly powerful storm surge. As Floridians, we hang tough, but know when to get out of harm’s way and let emergency responders do their jobs.

To help you prepare and fall back, and then regroup/recover when it’s safe to return to your homes and places of business, we offer the following key preparedness and recovery links.

Keep this list handy. And please stay safe, everyone.

And here are some useful articles and how-to videos from the I.I.I.

Article: Preparing an Effective Evacuation Plan

Article: Including Your Pets in Evacuation and Disaster Planning

Video: Evacuation: How to Get Organized

Video: Evacuation: The 10 Minute Challenge

Video: Hurricane and Disaster Preparedness
Follow us on Twitter @InsuringFLA for the latest updates on Hurricane Matthew and insurance related topics.

 

Massive Matthew: This is not a drill

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Florida Governor Rick Scott issued an executive order yesterday putting the entire state on notice that ill winds are coming. The National Hurricane Center continues to update its advisories, and hurricane watches and warnings are in effect. A warning means take immediate action. This is not a drill.

The hurricane drill may be a distant memory for some. Here’s hoping those who had experience with the storms of 2004 and 2005 provide quick tutorials, and the lessons are put into practice. If you are in an evacuation zone and in an area where a hurricane warning has been issued, get on the road — while you still can. Don’t fight with the authorities over your right to stay. Don’t fight with the wind because it’s stronger than you. The (often) arduous journey of your flight to safety is a better tale to tell than a first-person account of the physical mess Matthew is expected to deliver.

Be safe. Be Ready, Florida.