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Will my Business Insurance cover Natural Disasters?

Earthquakes hitting CA; hurricanes impacting LA and residue rain flooding parts of AR, MO, MS and  TN; Tornadoes in TX, OK and PA; severe thunderstorms in NY, NJ…

Any business can suffer unexpected losses when natural disasters strike. That’s why it’s important to review your commercial property insurance policy before extreme weather occurs.

RELATED: about mudslide insurance

The following gives the business owner a sampling of various forms of coverage as they pertain to ‘Mother Nature’.


Hurricane Damage

Hurricanes are generally covered by a standard commercial policy.

The insurance will cover:  

  • Damaged windows

  • Ripped off roofing

  • Water damage, excluding flood damage that is covered separately in a flood policy

It's important to note that if your business is located within a hurricane zone, it will be difficult to get coverage and available policies will be expensive.

Tornado Damage

Tornadoes are usually covered in a standard commercial policy. 

This includes:

  • Wind damage

  • Rain damage

  • Hail damage

 If your business is located in what is considered a tornado zone will find it difficult to get coverage. Available coverage will be expensive.

Earthquake Damage

Earthquake risks are not included in a standard business policy. Business owners need to acquire a separate policy that protects against any or all of the damages equated to an earthquake’s occurrence.


Volcano Damage

Though a severe earthquake eruption is uncommon, most commercial policies cover related damage. 

This includes:

  • Volcanic explosion damage

  • Shock-wave damage

  • Ash damage

  • Dust, lava destruction

Aside from the state of Hawaii that allows related coverage through the Hawaii Property Insurance Association, any business that is located with a ‘Lava Flow Hazard Zone’ will find it difficult to secure the coverage.


Flood Damage

A standard business insurance policy will not cover floods – even if they are caused by hurricanes, tornadoes, heavy rainfall or other weather conditions.

The National Flood Insurance Program was created to protect homeowners and business owners form financial losses incurred as a result of a flood.


For more information about how to protect your business from losses related to a Natural Disaster, speak to the experts at Prime Insurance.



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