If your Florida business sustained damage as a result of a natural disaster, you may assume that your insurance coverage will kick in. However, in some cases your insurance policy may fail to offer coverage based on the details on how the damage occurred. Because these issues can be complex even if you have a good understand of your insurance policy, Marsh.com offers the following information.
In terms of how deductibles are applied there can be numerous variances. Some deductibles may entail a percentage of values while others may offer a specific dollar amount. Additionally, other deductibles can be classified by location or they may be classified by occurrence. If you don’t know how the deductibles on your specific policy work before a disaster strikes, you will likely have a tough time navigating the process afterwards.
What’s Covered by Business Interruption
Business interruption coverage is intended to provide profits on a temporary basis while you make repairs to your business. It can also cover continuing expenses related to operating, such as tax costs on your property. Business interruption does not make up for lost income however, and an indemnity period often applies which means payouts would be on a temporary basis.
Windstorms vs. Floods
Damage caused by natural disasters are rarely cut and dry. Accordingly, if you have flood insurance in place but damage is caused by high winds, this damage may not be covered. Storm surges (which are torrents of water brought on by high winds) are another hot button issue. If you have questions about the specific nature of your policy and what it protects, be sure to check with your insurance company immediately.