This is part two of our Florida Business Hurricane Readiness Series. The first article explained why a quiet hurricane forecast can still leave Florida businesses exposed to costly storm damage and disruption.
Before storm season becomes active, business owners should know how their policy would respond to wind or named storm damage, what deductible would apply, and whether current property limits still reflect the business as it operates today.
Wind, hurricane, and named storm losses can be handled in different ways depending on the policy, carrier, location, and building.
Some businesses have wind coverage included in the commercial property policy. Others may need a separate windstorm policy or endorsement. In some cases, wind may not be covered at all.
If wind coverage applies, the policy may also include a separate deductible, a higher deductible, a percentage deductible, or specific coverage limitations.
Business owners should confirm:
These answers should be clear before damage occurs.
Coverage limits should reflect the business as it operates today, including the building, business personal property, equipment, inventory, signs, outdoor property, computers, tools, and tenant improvements.
A limits review should account for recent purchases, renovations, higher inventory levels, equipment changes, lease requirements, and replacement costs that may have increased since the policy was last reviewed.
If a storm damaged the business today, would the current limits reflect the cost to repair, replace, and recover? If the answer is unclear, the policy should be reviewed before storm season becomes active.
Sterling Meadows Insurance can help Florida business owners review commercial property coverage, deductibles, and storm-related exposures before hurricane season becomes active.