The National Earthquake Information Center records information and publishes reports about earthquakes around the world that meet certain standards. Currently the NEIC publishes around 30,000 earthquake reports each year, representing a significant resource for the many million that take place each year.
When earthquakes do occur, they range in severity from minor shaking to catastrophic damage. When serious earthquakes take place, you need to know you have the right kind of insurance coverage to protect your business interests.
Earthquake coverage may be purchased as an endorsement that you add on to your existing insurance. It will cover damage to your business from earthquakes, such as structural damage to the building and damage to business property.
About Earthquake Insurance Deductibles
Unlike standard home or business insurance, the deductible for damage on an earthquake policy is a percentage of the policy limit. The higher amount a business is insured for, the higher the deductible in the event of an earthquake. The greater the risk for earthquakes in a given state, the higher the percentage used to determine the deductible will be.
Content Coverage for Earthquake Endorsements
Most standard earthquake policies offer a set dollar amount for coverage when it comes to possessions. The thought behind the process is sound. Many items aren’t destroyed when earthquake occur. For businesses that may have computers, fragile items, and delicate equipment, this can be a major problem prompting the purchase of additional contents coverage above and beyond the standard earthquake endorsement limits.
How Your Other Business Policies can Help
While it’s a good idea to purchase earthquake insurance for your business, your business owner’s policy is not entirely useless in the event of an earthquake. If your gas lines are compromised as a result of the shaking and quaking and your business catches on fire as a result, your business insurance will cover the damage caused by the fire.
The same holds true for things like business interruptions due to being closed in the aftermath of an earthquake and will repairs are being made to your business. Commercial auto insurance will cover business automobiles in most cases, though you should certainly check with your insurance provider to be 100 percent certain.
Workers’ compensation coverage will also cover injuries to employees who were injured while working during an earthquake.
The thing to know about earthquake insurance is that it’s a lot like flood insurance. Most people believe (or perhaps hope) it’s something they’ll never need – until they need it. Then they’re mighty glad to have it. Don’t place your small business at unnecessary risk by skipping this vital type of insurance coverage. Consult us today at BOLT Insurance Agency to decide what kind of earthquake policy is better suited to meet the needs of your business.