In 2012, Hurricane Sandy hit the northeastern part of United States and left a total of 117 casualties; 34 of which coming from New Jersey. The state was one of the hardest hit areas, leaving it paralyzed due to power loss for days, deep flooding, and property damage. As expected, businesses were greatly crippled. About 19,000 small businesses in New Jersey alone were affected with total estimated business loss reaching $8 billion.
For those who managed to insure their businesses, only half of their losses were covered by their respective insurance companies. The reason for this is because the destruction was brought about by a natural disaster. Most of the policies offered weren’t answerable to natural calamities for these are inevitable. Many business owners protested about flooding that delayed and damaged their business operations while many reports revealed that insurance did not approve of quite a lot of claims. As earlier mentioned, unless the policy specifically includes flooding or other natural disaster, losses incurred under these categories can’t be covered (at least, not fully) by the insurance company.
Whatever nature brings shouldn’t stop your business from flourishing. Save as much as possible by insuring your investment. There’s a good variety of insurance policies available in areas that cater to its unique hazards. It is best to do extensive research and assessment of what insurance policy is suitable to your demands and location.