How commercial insurance helps with weather-related business disruptions

No matter how meticulously you manage your business, there is one thing you can’t control: the weather. From hurricanes in the Maritimes, to holiday-season cyclones in Eastern Canada, and the wildfires out west, severe weather can cause billions of dollars in damage.

As the potential for severe and extreme weather increases, it is more critical than ever for small-business owners to protect themselves against weather-related business interruptions and the threat of financial losses.

Commercial insurance can be crucial in helping protect your business’ bottom line, by providing you with a financial safety net in case something happens. In this blog, we discuss what the different types of commercial insurance cover and what you should include in your commercial insurance policy.

What commercial insurance policy does your small business require?

Many types of commercial insurance policies can help ensure your business is protected. Here are the most common examples.

1. Commercial property insurance

When you think about inclement weather, your mind first goes to protecting your property or commercial building. Flooding, high winds, and wildfires are all examples of disasters that can cause significant property damage.

A commercial property insurance policy can help protect your building and everything inside in the event of a loss.

Commercial property insurance can support repair or replacement costs caused by weather-related damage to your building, equipment, inventory, furniture, or electronics. The right commercial insurance policy may be just what you need to get your business back on its feet after disaster strikes.

2. Commercial general liability insurance

A slip and fall is most likely the last thing on your mind—until it happens. Commercial general liability insurance can help protect you against a wide range of third-party liability claims, including physical injuries, damage to a third party’s property, defective products, slander and libel, false advertising, intellectual property theft, and copyright infringement.

At the bare minimum, every business should have a standard commercial general liability insurance policy to protect them from risk and loss.

3. Commercial auto insurance

Unfortunately, there are times when driving during extreme weather is unavoidable. Not only do drivers need to be prepared for all types of road conditions, but your business needs to be prepared with the right commercial auto insurance coverage.

Vehicles owned by your business and used for company purposes, including personal vehicles, should be covered by a commercial insurance policy. Commercial auto insurance can help protect the company from damage to their vehicles, injuries to the occupants of the vehicle, and liability claims. Individuals who work from home, gig workers, and contractors should all consider commercial vehicle insurance if they use their personal vehicle for work reasons.

4. Business interruption insurance

Business interruption insurance is there to help your company recover when it needs to close or scale back its operations due to circumstances beyond its control. The purpose of this insurance is to protect the revenues that the company has missed out on, as well as help with expenses such as fixed costs, employee salaries, and the lease of temporary facilities.

You can’t weather-proof your business. But you can choose the right insurance policy.

The unpredictability of weather poses a significant challenge for small-business owners. As weather-related risks increase, small business owners should consider protection against potential interruptions and financial losses. To learn more about protecting yourself and your business, visit our Small Business Insurance Page today.

 

This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.