After Super Storm Sandy, millions of businesses rushed to file claims for loss of income and business contents damage. The lesson that many home-based business owners learned was that their homeowner’s insurance didn't cover these items; however, home-based Tampa business insurance does.
Since over half of home-based business owners are not adequately covered for loss of business income or assets, they are still struggling to rebuild their home-based businesses four months later.
Here are ten lessons that home-based business owners learned from Super Storm Sandy that you should know.
Have your contents covered.
Surprisingly, many home based business owners did not have content insurance before Super Storm Sandy. After the storm, many home-based business owners were forced to quit their businesses because they did not have adequate coverage. The lesson here is to sign up for contents insurance as soon as possible. This type of insurance policy will cover all equipment in your home from damage caused by natural disasters or accidents.
Have a continuity plan, even for small businesses.
A business continuity plan contains instructions that will kick into action in the case of an IT glitch or natural disaster. If you’re a home-based business owner or a business owner that is working for more than one location, it is important to have a continuity plan in place so that you can quickly get back to business after an accident while your premise is being renovated.
Invest in home business coverage.
Home business coverage covers your business equipment for a higher dollar amount than contents insurance. Not only does it cover for business equipment, but it also covers for the loss of income caused by damage to the equipment.
Include commercial car insurance.
If you have more than one driver or you're using your car to haul goods, have commercial auto insurance. After Super Storm Sandy millions of auto insurance claims immediately went into effect. Some of these claims were not paid out because the cars were not insured as business vehicles, but were being used for business.
Take inventory before a disaster.
Before signing up for contents insurance or business insurance, take inventory of every belonging you have within your business including serial numbers. Then have each of these items evaluated. This way you can make sure that you're being insured for the proper dollar amount. Your insurance company may not be so forgiving on a claim if you're trying to claim a big ticket item that wasn't mentioned at the time purchasing your policy.
Make a timely claim.
Every insurance policy has a stipulated time-period in which to make a claim. If you make a claim after this point, it will not be honored.
Contents are covered outside of the premise.
Business equipment that is originally kept in the home is covered if it is damaged off-premise. This goes for hardware and appliances.
Warranties were not effective.
Some business owners didn't make claims to their insurance company after Hurricane Sandy because they thought their warranties would cover them. A general warranty for electronic good or appliances generally last for 1 to 15 years. However, these warranties do not cover damage caused by natural disasters. For this, you need contents insurance or business insurance.
Backup your data.
One lesson that many people learn the hard way is that all data should be backed up or kept off location. Some businesses had all of their data destroyed during hurricane Sandy.
Keep copies of your insurance policies electronically.
There's nothing like trying to make an insurance claim and not knowing any of your insurance information. To keep this from happening to you, make copies of your insurance policy as well as the inventory of your business and keep it in a safe, weatherproof location such as a bank lockbox or safe.
For more information about insuring your home-based business, give Adcock-Adcock Insurance Agency a call at 813-933-6691.