We’ve seen it in the news and have numerous examples to choose from. More recently, business interruption has come in handy with the aftermath of Hurricane Sandy (if the business was covered correctly). From Hurricane Sandy alone, there were over $9 billion dollars worth of commercial lines claims, accounting for 48% of the claims filed. The number of claims compare small to the amount of home and auto claims, but the value of the commercial claims outweighed the rest.
According to the Insurance Information Institute
A couple items to think about when putting together your catastrophe plan:
- Business Personal Property: What is the value of your inventory if it were lost?
- Sales: Take a look at your sales numbers for the past 2-3 months. How much would you lose if the store had to close for a day, one month, etc.
- How probable is it for you to experience a catastrophe? 100%