How Hurricane Season Affects Business Insurance for Florida Companies

The Atlantic hurricane season can have dire ramifications for businesses throughout the region, including those in Florida. With the Sunshine State surrounded on three sides by water, hurricanes constantly loom as a significant threat for businesses to account for. This makes it necessary for companies of all sizes and sectors to consider how these severe storms might impact their business insurance needs. Successfully navigating this process can make all the difference in the wake of a hurricane.

What Types of Insurance Are Needed for Hurricanes?

Florida businesses may need to consider several types of insurance to fully protect themselves from the financial ramifications of hurricanes. Specifically, the following policies should be examined and strongly considered:

• Commercial property insurance—These policies may assist with certain damage to businesses’ buildings and other tangible assets, such as if a lightning strike were to start a fire.
• Flood insurance—Floods are a critical exclusion from most standard commercial property insurance policies. These perils, whether from heavy rainfall or broken levees, typically require separate coverage purchased from a private insurer or the National Flood Insurance Program.
• Windstorm insurance—Although wind-related losses may sometimes be included in standard commercial property insurance, businesses should not assume this is the case. At times, additional coverage for severe windstorms, such as hurricanes, may be necessary.
• Business interruption insurance—In the lead-up and wake of a hurricane, a company’s operations will likely be disrupted. Should a building or key equipment be damaged, this type of policy can be critical in helping policyholders remain afloat and absorb losses.

The aforementioned trio of coverages is likely necessary for most businesses regardless of industry or other specific circumstances. However, insurance needs related to hurricanes do not necessarily end there. For example, companies with fleets of motor vehicles should ensure they have comprehensive coverage in their commercial auto insurance policies. Additionally, those beholden to clients’ deadlines should ensure their professional liability insurance is sufficient, as hurricane-related delays could lead to losses.

We’re Here to Help

Contact Clearwater Partners in Tampa, FL, today to learn more about coverage options capable of addressing hurricanes or to compare personalized insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.