Why your business should prepare an emergency plan now
SAN FRANCISCO – (COMMERCIAL THREAD) – Running a business involves significant risks. In the event of a disaster, it’s worth being prepared – and just having insurance is often not enough.
Consider these statistics:
75% of American businesses are underinsured
40% of businesses don’t reopen after fire or other disaster, Small Business Administration estimates
Of the businesses that reopen, 25% close their doors in the first year after the event
In many cases, these business owners mistakenly believe their coverage is adequate. This discrepancy could mean the difference of thousands or even millions of dollars when it comes time to recover a settlement. And the worst time to find out about this coverage gap is right after a catastrophic loss.
But there are steps you can take today to make sure your business can successfully recover from a disaster.
Step 1: Check your insurance policy.
It is important to make sure that you have sufficient insurance for your property and for your business.
Your property insurance should cover the cost of replacing or repairing damaged property, which includes your buildings, their contents, machinery, equipment and inventory. It is essential to register every property on your business site and perform a thorough inventory to assess the true value of your business before obtaining this policy.
Business income insurance will pay you the cost of continuing your business, providing your business with a way to pay for essential expenses like utilities, rent, and wages as it recovers from a disaster.
The key to avoiding financial disaster in the event of a claim is knowing what’s in your insurance policy and understanding what that means. Often the intricacies of a policy contain details that could have a disproportionate impact after a disaster.
Step 2: Build a team of trusted advisors.
Before purchasing a policy, it’s best to consult with a team of trusted insurance advisors, including your lawyer, accountant, insurance broker, and adjuster.
Most businesses already have lawyers, accountants, and insurance brokers, but public adjusters also play a key role. As experts in dealing with insurance loss and disaster recovery, their experience allows them to analyze your policy to identify pitfalls in your coverage in advance. Although public adjusters are underutilized before disasters, an upfront consultation is always worth it.
Each expert on your team brings a unique perspective on what’s best for your business based on their area of expertise.
Step 3: Know who to call.
You will want your disaster recovery team already in place so that they are ready to jump into action immediately after the event. These advisers, who should include the same experts who have helped you previously, will advise and advocate for your interests.
Even if you have taken all the prudent steps to protect your business with an updated policy and additional coverages, the insurance company will protect its bottom line by limiting its financial obligations as much as possible. As a disaster recovery expert, your claims adjuster is uniquely positioned to deal with your insurance company and can safely guide you through the minefield of adjustments.
In the event of a disaster, it pays to be prepared.
Inadequate insurance is all too common, and it’s a mistake that can bankrupt you when bad luck hits. To protect your business, take control of your insurance situation. Mitigate future risks by sitting down with a trusted advisor and reviewing your policy to identify areas where you need to add or adjust coverage.
Take action now to plan for the worst and make your business recovery easier. With good insurance and your team of experts by your side, everything will go much easier.
About Greenspan Co./Adjusters International
Founded in 1946, The Greenspan Co./Adjusters International is the premier public adjustment company on the West Coast, serving both commercial properties and owners. With over 75 years of experience fighting for our clients, Greenspan Adjusters has the expertise and background to prepare, present and negotiate insurance claims to ensure you receive what you are entitled to. . And as insurance professionals who represent the interests of our clients – not the insurance company – Greenspan’s public adjusters can save you time and stress while we negotiate your settlement. you deserve. For more information on how an adjuster can make your life after a disaster easier, visit www.greenspanai.com.