Business hurricane insurance

Commercial property insurance, also called business hazard insurance, protects your business against property damage claims. However, natural disaster coverage is usually not included in standard commercial property insurance or business owner's policies (BOP). It needs to be added as a separate policy (called a rider) and does carry an additional cost.

Small business owners under constant pressure to keep their costs low may also find ignoring the possibility of a catastrophic storm tempting. It can be easy to overlook the importance of hurricane insurance coverage until it's too late.

For home-based small business owners, homeowner's and renter's insurance also typically exclude coverage for commercial property damage resulting from extreme weather-related incidents.

Additionally, building insurance and business renter's insurance won't cover hurricane damage either, without the proper additional riders. Unfortunately, many small business owners only learn this information after a severe weather event.

Unlike a traditional commercial property insurance policy, a hurricane policy covers:

• Business disruptions resulting from damage and repair closures
• Wind damage from the powerful windstorms associated with hurricanes
• Water damage from intense hurricane rains

In some areas, property insurance includes protection against wind and hail damage and may have options for business interruption coverage during shutdowns. However, wind and hail may not be covered in other regions, particularly those with frequent natural disasters.

Speak with your licensed insurance agent about the benefits and exclusions of your coverage.

If your business is located in the coastal United States, the risk of a hurricane is a major concern. According to the National Hurricane Center, hurricane season usually goes into full swing from:

• June 1 to November 30 for the Atlantic
• May 15 to November 30 for the Eastern Pacific

During these timeframes, you could be in trouble if a big storm hits, as managing the costs associated with hurricanes can be extremely expensive without the proper coverage.

Hurricane insurance can help your business recuperate lost income due to storm closures, as well as repair and replace damaged property.

As an additional safeguard, you may want to explore a business interruption insurance rider that can help you pay for ongoing expenses when a hurricane keeps your business from operating. You can often get this coverage if you purchase your commercial building insurance through a business owner's policy.

This insurance package typically bundles property insurance, general liability insurance, and business interruption insurance together at a reduced rate for qualifying businesses.

Hurricane insurance isn't a standalone policy. It is coverage against a named peril, added as a rider to commercial property insurance or a business owner's policy.

This means a small business owner can't just purchase hurricane coverage; it must be added as additional coverage to an existing policy.

Some property policies will cover standard water damage, like from a pipe leak. However, hurricane insurance will not cover damage from flooding, even if the flood was caused by the hurricane. If your commercial property is vulnerable to flooding, consider a flood policy as part of your plan to protect your business.

The FEMA National Flood Insurance Program can help you obtain flood coverage. Even if you rent a building space from a landlord who has flood insurance, you should consider getting your own policy for your business assets, such as equipment and inventory, as it may not be covered.

Small business owners in extreme weather zones, such as Texas, Louisiana, and Florida, should not operate without a hurricane policy. Tropical storms, hurricanes, and tornadoes can cause significant damage that many traditional policies won't cover.

If you live in a vulnerable area, you should strongly consider a hurricane or flood rider for your commercial insurance policy.

To get a hurricane insurance policy for your small business, complete Insureon's easy online application. We'll connect you with free quotes from the nation's leading insurance companies.

You can also speak to one of our licensed insurance agents and they'll help you find the proper coverage for your needs.

After you find the right commercial hurricane insurance for your business, you can begin coverage and receive a certificate of insurance, often within a few hours.