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How to protect your business against floods, storms and hurricanes?

Believe it or not, Mexico is one of the countries most vulnerable to climate change. Know the insurance that you can take advantage of for your business.

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Entrepreneur contributors are their own.

Mexico is one of the countries most vulnerable to climate change ; 15% of the territory and 68% of the population are exposed to risks associated with its effects such as hurricanes and floods .

Bloomberg | Getty Images

Unfortunately, and despite the catastrophic effects of these natural phenomena, SMEs are one of the least protected sectors. The need to have a protection instrument that covers the patrimony of entrepreneurs does not yet permeate on the list of priorities, since less than 5% have insurance to take care of their business against these possible effects.

Our business is vulnerable to any risk

There are protection instruments such as insurance for SMEs that are responsible for covering damage to facilities, machinery and even workers themselves. The cost of this financial tool, depending on the type of business, size, location, among other factors; it can start from two thousand pesos a month; a minimum investment if it is to take care of our assets, and ensure the continuity of the operation in our business .

But exactly what these instruments offer and which one is the best.

Five tips you should consider to protect your business

1. Insurance for SMEs is aimed at businesses with a maximum of 250 employees, and offers a maximum insurable value between the property and its contents (merchandise, furniture, fixed and / or portable electronic equipment, machinery and boilers) of 40 million pesos or its equivalent in dollars between all its locations.

2. It is essential that you acquire Civil Liability coverage, as this protects you against the damages that you as a company can cause to a third party. For example: if one of your billboards falls on a passerby, this coverage supports the compensation.

3. Before signing your insurance contract, verify that you have coverage for material damage to your business, as these claims are the ones that most put the continuity of your business at risk .

4. If your company is located in a coastal zone and / or seismic zone, it is essential that you integrate Natural Disaster coverage into your protection; so in case of suffering the consequences of the impact of a hurricane, storm, flood, earthquake or the eruption of a volcano, your business will be protected; therefore your heritage as well.

5. Finally, if you have vehicles in your company, insure them with comprehensive coverage! In the rainy season, car claims increase by 20%, and if your fleet suffers mechanical damage, clothing, or the electrical system due to a natural phenomenon, with this coverage you will be protected and you will not lose this resource.

Remember that prevention is the best investment for the safety of your business.