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When Catastrophes Strike: Preparing Your Business in Limestone County

Let's say that one of our Limestone County summer tornadoes damages your business facility beyond repair. Or torrential rains flood your operation, ruining furniture and important equipment. Although we don’t often want to think about it, homes and businesses have to be prepared for disaster to strike. Catastrophe insurance coverage protects businesses from both natural and manmade catastrophe, such as floods, earthquakes, and any other event that can destroy or severely damage property and equipment. 

Every business is exposed to different risks. Pepper Johnstone & Company matches those companies disproportionately exposed to certain risks with the right policies. Moreover, we aim to help people understand the steps they should take, beyond insurance, to help protect their business from disaster. 

Why do I need catastrophe coverage in Limestone County?

Catastrophe can strike in so many shapes and forms. No single insurance policy covers it all. However, there are steps you can take to cover your business with the right policies

Studies show that catastrophes will double in the coming years as population and building density grows. Catastrophe insurance is a broad area. Below is a checklist of items for you to evaluate where you’re covered, and what you might need to think about to help protect yourself in the future. 

Traditional business insurance doesn’t cover all catastrophes

It’s important to note that insurance doesn’t always cover the entire range of catastrophe coverage. For example, some policies don’t cover specific events, such as floods. 

Our agents at Pepper Johnstone & Company aren’t affiliated with any one insurance company. That means we work with you to find the best coverage for your organization. 

Business interruption insurance can bolster protection

Imagine a scenario so damaging that your physical location has to be vacated for a time. Businesses that don’t plan for the costs of a disaster and the ensuing disruption to their operations will be forced to close. Business interruption insurance reimburses for lost income when you absolutely must vacate your building as a result of disaster-related damage. 

Business interruption insurance covers the profits, rather than the revenue, a business would have earned if the disaster hadn’t happened. In addition, business interruption coverage can pay ordinary payroll while the business is non-operational, provided this option is purchased.  

Extra Expense Insurance covers other areas of catastrophe

It might not be worth relocating your business if it costs more than the revenue lost due to disaster. Extra expense insurance reimburses expenditures beyond normal operating expenses. This prevents the need to shutter your company as it recovers. The cost of extra expense insurance, similar to business interruption insurance, can vary depending on things like business location and industry risks. 

Contingency plans beyond catastrophe insurance coverage

Equal to the importance of the right insurance coverage are the steps you take to protect your business when catastrophe strikes. We encourage you to consult with the experienced  professionals  at Pepper, Johnstone & Company, who have decades of experience in not only insurance coverage but general business advice. In the meantime, here are some effective preventative measures that just might save your business: 

  • Fire safety and prevention are of utmost importance for a business. Practice fire drills and train employees in fire safety. Make sure cigarette smoking is confined to appointed areas away from the premises. Most importantly, make sure your building is up to code. The checklist inherent to this code will help protect the building from fire hazards. And speaking of checklists, brainstorm the kinds of risks your business is especially exposed to, whether it’s fire, flood, earthquake, or something else. 

  • Catastrophe can damage materials beyond repair. Start now by backing up your records off-site. This will help you maintain operations while recovering from the catastrophe. In the event that you’re able to do so, decide what you need to run the business at another location. Who and what are essential to continuing operations? What materials, and people, are absolutely required? 

One of the best things you can do now to protect your business from catastrophe is to plan a communications strategy. How will you inform your customers or continue providing service? Attempting to create this plan after disaster strikes is nearly impossible. Do it now, before it’s too late. 

Pepper, Johnstone & Company is independently owned and locally operated to handle your insurance needs, including catastrophe and disaster insurance coverage for your home or business. We focus on Athens and offer affordable and reliable insurance choices all across Alabama, Georgia, Mississippi, North Carolina, South Carolina, Louisiana, and Tennessee. Our experts will help you address the risks specific to your location or industry. Contact us today to learn more about how we can help you.