Small Business Insurance: How to Protect Your Store Before Spring Storm Season 

Even in the middle of winter (which brings its own challenges), the savvy business owner is already planning ahead for tumultuous storms that arrive with spring. 

Owning a store is an investment in your future, one that you will hopefully grow and expand over the course of many years. However, that investment faces many risks, including the worrying storms of the spring season. To give your store the protection it deserves, it is important to get the right small business insurance. 

To know what your store actually needs, it is important to know why storms are so dangerous, what kinds of coverage are available, and what you can do to reduce potential damage. Remember: The storms will be here quicker than you think, potentially placing your retail store in major danger. Keep reading to discover everything you need to know to get proper storm season business coverage. 

Why Spring Storms Are a Major Risk for Small Businesses 

Spring storm preparation begins with understanding exactly how and why this weather poses such a major threat to small businesses. The short answer is that these storms are unpredictable and may damage your storefront in a number of different ways. For example, if the area gets flooded, this may damage both the exterior of your building as well as anything valuable (ranging from unsold products to self-checkout kiosks) on the inside. 

Even if your area does not get outright flooded, very intense storms can cause issues like burst pipes and electrical damage that could put your store out of commission for days. If the winds are strong enough, your store roof could get damaged or even fly off. Without reliable commercial property coverage, you will have to pay for repairs out of pocket, all while potentially dealing with lost revenue due to having to unexpectedly close your store. 

Weather Trends Business Owners Should Know 

Storms are most common in the spring season. This may come in the form of heavy rain, flooding, and even hurricanes. By getting better commercial property coverage ahead of hurricane season, you can proactively protect your store against an act of God that could otherwise put you out of business. 

Common Storm-Related Claims 

The most common storm season business coverage claims involve physical damage to the building (like roof damage and broken windows) and water damage (generally from leaky roofs and burst pipes). Owners may also file claims for lost revenue during this time. Finally, companies are more likely to file liability claims because the bad weather makes slip-and-fall incidents more common. 

By better understanding the impact of natural disasters on small business claims, you can secure the coverage you need before the spring storms arrive. 

Insurance Coverages That Protect Businesses During Storm Season 

One thing you discover very quickly as an entrepreneur is that not every small business insurance policy is created equal. In fact, there are many different policies available, and it can be hard to pick the right ones for your store. This can be very stressful because if you do not have the right commercial property coverage in place ahead of hurricane season, you may not realize your very expensive mistake until it is too late. 

Does your own store need the protection of a good liability policy or the versatility of business interruption insurance? Speaking of versatility, will you need the more robust coverage of an umbrella policy? Below, you will learn more about the different kinds of policies that can help with risk management during storm season. 

Commercial Property Insurance 

Commercial property policies are designed to protect your building (whether you own or rent) from damage, and they extend that protection to the equipment inside. This is usually enough to protect a storefront, but standard policies do not protect against floods. If you are worried about flooding, be sure to take out a separate rider, and do so ASAP because such policies usually do not go into effect until 30 days after purchase. 

Business Interruption Coverage 

No matter how good your spring storm preparation is, there is a chance your store will get damaged. Business interruption insurance is designed to protect you from loss of income while you repair and rebuild. That way, you can take care of the damage without worrying so much about your bottom line. 

Equipment and Inventory Protection 

The standard commercial property policy is designed to protect your equipment. But to get additional protection and to better secure your inventory, you should ask your carrier about different policies and riders that can give you additional protection and peace of mind. 

General Liability Insurance 

General liability policies protect against claims that your store caused damage to another person and/or their property. This is most common when a customer slips and falls at your store and holds you liable. Keep in mind that such claims are much more likely during storm season since everyone is walking inside with wet feet. 

Commercial Umbrella Coverage 

Commercial umbrella policies are designed to provide extended liability coverage. Therefore, if you file a claim that your general liability insurance for a small business is insufficient to cover, your store would have additional protection. 

Preventative Steps To Reduce Storm Damage 

Small business insurance is important, but with any luck, you will not have to file a claim during storm season. Fortunately, entrepreneurs who want to make their own luck can take a few easy steps to prevent having to file in the first place. 

No matter how big (or small) your store is, storm claim prevention is easier than you might think. Below, you will find a few easy steps you can begin as early as today, all of which can help you improve your risk management ahead of storm season. 

Building and Roof Maintenance 

It is important to regularly maintain your building and roof and make any necessary repairs ahead of storm season. Otherwise, your roof may leak, potentially damaging equipment and inventory alike. Or it may fly off entirely, forcing you to make an expensive, out-of-pocket purchase just to keep a roof over your customers’ heads. 

Protecting Windows, Signage, and Outdoor Areas 

A simple step for storm claim prevention is protecting your windows, which you can do with shutters or even plywood. Secure all of your exterior signs before anything can potentially blow away. Finally, if you have loose items in outdoor areas (like chairs and tables), be sure to move them inside before the storm hits. 

Creating a Business Continuity Plan 

To protect both your business and your employees, it is important to develop a continuity plan and use it to train all of your workers. Before a storm hits, you and your workers should have memorized a plan that dictates (among other things) what everyone is supposed to do before, during, and after a major event such as a hurricane. As the store owner, a little preparation now can save you plenty of time and money later, all while keeping your employees safe. 

Prepare Your Business for Storm Season With the Right Coverage 

Now you know the kinds of small business insurance you need to protect your store ahead of storm season. This includes the types of coverage available, the most common claims, and how to protect yourself from seasonal damage. But do you know where to find a carrier who cares about your company just as much as you do? 

Here at InsureOne, business insurance is our specialty, and we are devoted to protecting entrepreneurs just like you. When you are ready for the peace of mind you and your store deserve, come get a quote online. You can also pick up the phone and give us a quick call at 800-836-2240 to experience the best and most bespoke customer service in the industry. Of course, for a more face-to-face experience, you are always free to come find an InsureOne office near you. 

FAQs 

Do I Need Separate Flood Insurance? 

Most commercial policies do not cover flooding. If you are worried about floods damaging your store, you will need to take out a separate rider. 

Does Business Interruption Insurance Apply After a Storm? 

This insurance will likely apply after a storm, but certain conditions may need to be met. For example, the carrier may not pay out unless your building was physically damaged. 

How Much Coverage Should a Small Retail Store Have? 

While no one size fits all, it is generally recommended for businesses to have at least a million dollars in liability insurance for their small business. For property policies, you should have enough coverage to repair or replace everything in the building. For business interruption policies, you should have enough to cover at least three months of operating expenses. 

Are Storm-Related Inventory Losses Covered? 

Yes, storm-related damage and losses are covered by standard commercial policies. 

Can I Change My Policy Before Storm Season Starts? 

Yes, you can switch policies (for example, switching to InsureOne business insurance) ahead of storm season, but your timing is very important. You may not be able to get any new coverage, for example, after a named storm is forecast to hit your area. And if you take out a separate rider for flood insurance, you may have to wait 30 days before it goes into effect.