What Type Of Insurance Helps After A Storm
Many of our construction clients located in areas known for hurricanes have special types of insurance coverage that often kicks in after a storm has passed through. If you own a construction business that is threatened by hurricanes every year, then it is in your best interests to understand what type of insurance you need and how that insurance works. Our business experts can show you the various types of coverage you need to survive a storm, but it is always a good idea for a client to educate themselves on the coverage that could save their business.
BI coverage, also know as Business Interruption coverage, is one of the more common types of insurance that all construction companies located in hurricane areas would have. The general purpose of this insurance is to kick in when your company is forced to shut down for reasons beyond your control. A hurricane most definitely qualifies as a situation out of your control, but there are other instances where BI insurance can be helpful.
Examples of forced shut-downs of your operations include significant vandalism to a worksite, inability to access a worksite for reasons you cannot control, and a loss of revenue due to some sort of unavoidable impairment at your main office site or a jobsite. Every business should have BI insurance of some sort, but we consider it mandatory for businesses in hurricane areas.
Contingent BI Coverage
What if your company or your worksite is not directly affected by a storm, but your key suppliers cannot get to you because of damage in their area? Contingent BI (Business Interruption) coverage protects your company in the event that a storm prevents your suppliers from being able to bring critical equipment or materials to your jobsites. This coverage will also help recover lost income if your customers are inaccessible for reasons beyond your control.
We offer Contingent BI coverage in many of our standard business insurance policies, and we also take the time to point this coverage out to our clients. Many clients are pleasantly surprised to find out that they can recover financial losses associated with the misfortunes of other companies critical to their business.
Ingress Egress Coverage
When your company cannot access critical sites that your operation relies on, then you would be covered for any financial losses by your ingress egress coverage. This coverage is triggered when the authorities shut-down access to business critical sites. For example, if your customer’s worksite is accessible but your equipment yard is not because the roads are closed, then this coverage would help cover any losses.
It is important to note that your property and equipment does not need to be damaged to cause this coverage to go into effect. This is one of the few types of business insurance that does not require any damage or property loss to go into effect and save your business money.
If you operate a construction business in an area known for hurricanes, then you need extra risk protection against the possibility of a major storm. Our business experts know how to put together the coverage you need to make sure that the next hurricane does not wipe out your business completely.