This ad will close in

When the Wind Blows

Shield your business from stormy weather.

Last year, four major hurricanes struck Florida, then unleashed their fury on states up the Eastern Seaboard and as far west as Texas. This year's hurricane season, beginning June 1, is again expected to be "above average." Even if you're not in Hurricane Alley, weather can still damage your business. The best way to deal with such hazards is a combination of property and business-interruption insurance, and other risk-management strategies.

"Unfortunately, many events, whether precipitated by a storm or other catastrophe, are not covered within the basic structure of most policies, particularly commercial property policies," says Anita Setnor Byer, president of Setnor Byer Insurance & Risk in Plantation, Florida. "And the insurance, if available, is often cost prohibitive."

It's impossible to insure against all potential weather damage. Instead, Setnor Byer advises, review your policies with your agent to clarify exactly what weather-related damage is covered. Then look at what recovery alternatives, including backup systems and cash reserves, will assure your company's survival. Keep in mind that even if you don't suffer direct property damage, you could be affected by a general slowdown in the local economy. Setnor Byer suggests that you have enough cash on hand to cover at least 30 to 60 days of operating expenses.

Like this article? Get this issue right now on iPad, Nook or Kindle Fire.

This article was originally published in the May 2005 print edition of Entrepreneur with the headline: When the Wind Blows.

Loading the player ...

Shark Tank's Daymond John on Lessons From His Worst Mistakes

Ads by Google

0 Comments. Post Yours.