Know Your Insurance Coverage
Many business owners get an insurance policy and put it away in a drawer, but the NJ Department of Banking and Insurance (DOBI) stresses that it is essential to know and understand exactly what coverage is included in your policies.
While the needs of each business vary greatly, it is important to recognize that New Jersey is now a much riskier state and businesses must be prepared. Many businesses will not reopen because they lacked the right coverage going into Superstorm Sandy, but not everyone needed the same type of insurance. Loss conditions varied based on location – during the storm, many North Jersey businesses suffered heavy wind damage, while flooding was dominant in the southern part of the state.
Business owners should talk to their insurance company or agent about the different kinds of coverage that can protect their businesses after an emergency.
Business interruption insurance can provide coverage for a company, even if there’s nothing wrong with its building following a disaster. For example, business interruption insurance protects businesses if the government declares a state of emergency and a business loses revenue because customers cannot get to its location.
Another type of post-disaster coverage is ordinance or law insurance, which can help businesses during the rebuilding process. For example, following Superstorm Sandy, new guidelines require many business and home owners to rebuild at higher elevations to avoid rising flood insurance premiums — an expense that could be devastating without having the proper ordinance or law insurance to help offset this cost.
However, having the right coverage for a business is only half the battle. Understanding that coverage is just as critical.
For example, a flood policy might not provide coverage for anything stored below sea level. Knowing this can help businesses better prepare and avoid a situation in which owners are denied coverage that they were expecting.