As hurricanes become more frequent and severe, New York and New Jersey businesses are increasingly at risk. The financial consequences of natural disasters can be devastating, halting operations, damaging property, and displacing employees. For hurricane-prone areas, business interruption insurance is a critical tool for mitigating these risks. This coverage provides a safety net that helps businesses recover quickly and resume operations after a disaster, making the difference between survival and closure.
How Hurricanes Impact Business Operations
Hurricanes and other major storms can wreak havoc on business operations in many ways. From structural damage and flooding to power outages and supply chain disruptions, the effects can create a costly recovery process.
Consider Superstorm Sandy in the fall of 2012, which devastated communities across New Jersey, New York, and Pennsylvania. Businesses in the region experienced firsthand the significant challenges posed by natural disasters. Many were forced to close their doors temporarily or permanently, with mom-and-pop shops bearing the brunt of the negative effects.
More recent storms serve as reminders of the growing risk. In 2021, Hurricane Ida brought catastrophic flooding to New York, forcing the evacuation of homes and businesses. The recovery from Ida alone cost more than $594 million in federal aid for affected businesses and infrastructure. In September 2023, major storms caused severe flooding in Brooklyn, leading to significant damage for businesses that are still struggling to recover.
What Is Business Interruption Insurance?
The impact of such storms–combined with increasingly unpredictable weather–makes it crucial for businesses to secure business insurance in New York that includes business interruption coverage.
Business interruption insurance covers various expenses when a business is forced to shut down temporarily due to a natural disaster, such as a hurricane. This type of insurance helps businesses manage the financial strain during downtime, allowing them to focus on recovery.
Coverage typically includes:
- Lost income: Compensates for revenue lost during the period when the business is unable to operate
- Relocation costs: Covers expenses related to temporarily moving operations to another location
- Payroll: Ensures employees continue to be paid even amid disruptions to business operations
Common Insurance Pitfalls
Not all business interruption policies are created equal, and exclusions may apply. It’s important to carefully review your policy and work with an experienced agent to ensure there are no unexpected gaps when you need the coverage most.
One of the most common pitfalls is the exclusion of flood-related damages, which is particularly concerning for businesses in hurricane-prone areas. Many business interruption policies don’t cover floods, meaning you would need to purchase separate flood insurance to protect your business from water damage.
Additionally, if your policy doesn’t account for potential delays in repairs or rebuilding, you may face gaps in coverage.
The Road to Recovery
Hurricanes can strike with little warning, and a lack of preparation could lead to irreversible damage. Working with a trusted insurance provider ensures you have a plan to protect your assets, employees, and operations.
In the aftermath of a hurricane, business interruption insurance can be the lifeline that enables your business to recover and rebuild. Without this coverage, businesses may struggle to stay operational or lose valuable time and resources.
Don’t wait until it’s too late. Contact Provident Protection Plus today to ensure your business is ready for the next storm with comprehensive business interruption insurance.
About Provident Protection Plus
For more than 65 years, Provident Protection Plus has served businesses and residents across several states nationwide. Today, we are a wholly owned subsidiary of Provident Bank, the region’s premier banking institution. To learn more about our coverage options, contact our specialists today at (888) 990-0526.