Commercial Property Insurance
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Business hurricane insurance

Hurricane insurance provides additional coverage against property damage caused by hurricanes and other extreme weather events, which is often excluded from standard commercial property insurance policies.

Does commercial insurance cover hurricane damage claims?

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.

Homeowner's insurance is unlikely to cover hurricane damage to commercial property

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.

What is hurricane insurance coverage?

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.

Protect your business with hurricane insurance

Why is hurricane insurance important?

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.

Can I purchase hurricane insurance without a commercial property policy?

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.

Does hurricane insurance cover flood damage?

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.

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Who needs hurricane insurance?

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.

How much does hurricane insurance cost?

A small business owner calculating their commercial property insurance costs

The cost of a commercial hurricane insurance policy will vary for every small business based on a number of factors.

Some of these factors include:

The cost of hurricane insurance is often negligible compared to paying for repairs and replacement of business property should a storm hit.

Other important policies for businesses that purchase hurricane coverage

Because hurricane insurance is not a standalone but an additional rider, you'll need a commercial property insurance policy. This policy covers the most common property risks and liabilities, such as fires, theft, and vandalism.

Hurricane insurance is essential, but other policies could prove to be beneficial in the event of a natural disaster. Some types of coverage to consider:

  • General liability insurance can protect your business against common risks, including customer injury, customer property damaged on the premises, and advertising injuries. This policy can be combined with property insurance into a business owner's policy (BOP), which can save you money.
  • Business interruption insurance can be added to a BOP to provide financial support if your business is out of power after a storm and can't operate as usual. It can protect against lost business income and ongoing expenses, including employee wages.
  • Finished stock insurance recovers costs from inventory damaged by fires, theft, vandalism, and natural disasters. It can also be added to a BOP to provide additional coverage.
  • Workers' compensation insurance can help your business in the event of an employee injury while on the job, including injuries from natural disasters. 

Prepare your small business with a hurricane risk-management plan

Hurricane insurance is only one part of a comprehensive hurricane risk management plan. To protect your business, especially if you live in a high-risk area, consider the following risk management steps:

  • Develop an established policy and procedures to handle a natural disaster. Outline what your staff should do, where they should go, and how to stay safe during a hurricane.
  • Do a safety walkthrough and ensure that your business is set up to handle a natural disaster. Ensure that there aren’t any electronics on the floor that could cause a fire or electrocution, that inventory is securely stored and won’t cause injury, and that exits are cleared of egress.
  • Create a regular data backup system so your business information is secured on a cloud-based server in case of an electrical outage or computer system damage.
  • Maintain good records. Ensure that business property and inventory levels are easily accessible during a natural disaster that damages property.
  • Draft a disaster communication plan with emergency contacts. Make sure this is regularly updated.

When it comes to disaster preparedness, it’s always better to over-prepare rather than be blindsided without a plan.

Hurricane response plan

How do I get business hurricane insurance?

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.

Verified commercial property coverage reviews

Hear from business owners like you who purchased property insurance.
Updated: May 31, 2024

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