DISASTER INSURANCE
DISASTER-SPECIFIC
INSURANCE
IS ESSENTIAL FOR YOUR BUSINESS
I
magine this scenario: You have
been successfully operating your
business for five years, seeing
massive year-over-year growth.
One year, a flood comes through
and wipes out half of your equipment
and damages large parts of your main
office building. No big deal, right? You
call your insurance agent to go over your
policy and make a claim. Uh oh. Turns
out you don’t have flood insurance and
that flooding isn’t covered under your
general business and property policies.
What do you do now? Eat the cost—
that’s about the only option available to
you.
Every business owner is well aware that
general business policies and others, like
workers’ compensation, are important.
Many don’t, however, think about the
importance of having disaster-specific
policies which will cover them for
disasters which could occur in their
area. It’s very difficult to consider the
types of disasters which could occur,
and it’s even harder to understand and
estimate potential losses that stem
from those disasters. To compound the
issue, consider the fact that right after a
disaster occurs, a huge influx of claims is
going to be filed at the exact same time.
Different insurance types are available
for different natural disasters (and
there are even some for man-made
disasters, like acts of terrorism). Many
26
natural disasters are understandably
omitted from business and homeowners
insurance, though. That is the key
element. Believing you are covered and
actually being covered are two very
different things. What coverage you need
depends on where you are and what kind
of losses you could potentially see.
SPECIFIC TYPES OF
INSURANCE ARE
AVAILABLE FOR ALMOST
ALL NATURAL DISASTERS,
AND UNDERSTANDING
WHAT YOU MIGHT NEED
CAN BE AS SIMPLE AS
CALLING UP A LOCAL
PROFESSIONAL WHO
UNDERSTANDS THE
GEOGRAPHIC REGION
YOU LIVE IN.
The Midwest may have a lot of tornadoes,
the South may have hurricanes, the
North may have huge snowstorms and
flooding. It all just depends on where
you are and what sort of protection you
might need to have.
It should also be noted that this type of
insurance is typically called catastrophic
insurance due to the losses that could
potentially be suffered and the large
scale of the events. It is also different
from hazard insurance. Confused yet?
If you were, we wouldn’t blame you.
Speaking with a professional is the best
way to make sense of it all.
Do you know what types of disaster
insurance you may need (or be required
to have)? If so, you are already ahead of
the curve. If not, you may want to pick
up the phone and make some inquiries.
Reach out to a professional today to keep
you protected from disasters tomorrow +
BY: BERNIE COSENTINO
VICE PRESIDENT, JGS INSURANCE
Bernie Cosentino is celebrating his 33rd
year in the insurance industry. Born, bred,
and educated in NJ he is a proud father
to his adult children Joseph and Maria.
Bernie is currently in his 17th year at JGS
Insurance as A Vice President and broker/
producer diligently pursuing the most
competitive and comprehensive insurance
program to a wide range of customer base.