Small businesses need commercial insurance to be in legal compliance and to protect the main asset of the business owner, which is often the total focus of their lives; the business they built up.
Commercial insurance is a broad category of protection that includes worker’s compensation, general liability, professional liability, product liability, property and casualty insurance, commercial vehicle coverage, and business interruption.
The one category of commercial insurance where many small businesses are under-insured is business interruption. Business interruption protection is vital coverage when a business cannot operate normally due to circumstances beyond anyone’s control.
The Risks of Climate Change
The impacts of climate change are showing up all over the United States in terms of massive flooding, wildfires, earthquakes, hurricanes, heat waves, huge storms, and tornadoes. In light of the increased risk of natural disasters, there is a chance that a small business will be suddenly wiped out. This can happen even if the business itself does not experience any direct damage. Power may be off for extended periods and roads may be closed.
If a natural disaster hits an area and the local economy stalls out, many of the expenses of the business may continue even when there are no revenues coming in to help pay for them. It is a shame to lose a business that was otherwise thriving because a natural disaster prevents its customers from the normal activities that support the business.
What Happens When Tourists Stop Coming?
Businesses that live off of tourism may be especially vulnerable. If all the community is damaged by a natural disaster then few tourists, except the gawkers, are going to want to come to the area. A business on the outskirts of such an area may not be able to keep the doors open without business interruption insurance.
Commercial Insurance Review
Work with your agent at Insurance Center of Green Valley, serving Green Valley, AZ and the nearby communities, to have a review of the commercial insurance coverage to make sure there is adequate protection in place. For all commercial insurance needs contact your agent at Insurance Center of Green Valley in Green Valley, AZ by calling 520-648-1150.