When it comes to problems that could interrupt your business, few are as potentially harmful as a hurricane. Everyone in Hawaii should consider hurricane insurance in addition to the coverage that you already have. Depending on the type of Property policy you have, the reality is that many insurers exclude physical damage caused by hurricanes, as well as the loss of business income that accompany this event. In order to protect your business for the long term, be sure to evaluate the benefits that hurricane insurance can bring.
What Our Business Hurricane Insurance Protects
Hurricane insurance’s primary use is to safeguard your business against physical damage of your building sustained in a hurricane. From winds that can shear pieces off of your facility to flying debris that may break windows and more, your hurricane insurance serves to supplement your property insurance when it comes to repairs.
Understanding Common Gaps In Coverage
One of the most common misunderstandings about hurricane insurance—or even commercial property insurance—is that it includes protections against flooding. Almost all the time, this is not true, and business owners can find themselves on the hook for a massive bill if they made decisions based on the belief that flood damage would be covered. Hence, we often assist our clients in evaluating Hurricane and Flood Insurance, simultaneously, so you may make apt business decisions.
From a damaged building that cannot see workers safely return for some time to a loss of power or utilities that prevent operations from resuming as normal, a hurricane will often disrupt business for a long time after it has dissipated. The resulting loss of business income can also be protected against by Hurricane (and/or Flood) insurance.
Trust The Pros To Provide Robust Hurricane Coverage
The best choice is to evaluate where your business is located and how it is generally affected by hurricanes to decide which types of coverage are right for you. A hurricane insurance policy is a solid place to start, but if your facility is at risk of flooding or being knocked out of commission for some time following a storm, additional riders or gap coverage may also be necessary.
Atlas Insurance Agency, A Marsh Agency LLC Company is one of the top insurance agencies in America, offering competitive products that are customized to your needs. Reach out by calling us at (808) 400-6680 or by requesting a quote online to learn more.
Frequently Asked Questions About Business Hurricane Insurance
Most standard commercial property policies in Hawaiʻi exclude hurricane wind damage entirely or apply a separate, much higher deductible to it. Hurricane insurance fills that gap by covering wind, flying debris, structural damage, and other losses caused by named tropical storms and hurricanes. Even a glancing storm or near-miss can produce wind damage, power outages, and extended closures, so coverage is important regardless of whether a hurricane makes direct landfall. Atlas builds hurricane coverage that coordinates with your commercial property policy to make sure there are no gaps.
No. Hurricane insurance covers wind-driven damage, including structural damage, broken windows, and damage from flying debris. It does not cover flooding caused by storm surge, heavy rainfall, or rising water during a hurricane. Flood coverage requires a separate flood insurance policy, available through the NFIP or private flood markets. Because hurricanes typically produce both wind and water damage, most Hawaiʻi businesses need commercial property, hurricane, and flood coverage working together for full storm protection.
The best time to buy hurricane insurance is well before hurricane season, which runs from June through November in the Central Pacific. Most carriers impose binding restrictions or “moratoriums” once a named storm is forecast to threaten the islands, meaning you cannot purchase or modify a policy when a hurricane is on the way. Buying early, ideally in the off-season, ensures coverage is in force when you need it and gives you time to evaluate options without time pressure.
Hurricane policies typically apply a percentage-based deductible rather than a flat dollar amount, often expressed as 1% to 5% of the insured property value. For a building insured at $1 million with a 2% hurricane deductible, the business is responsible for the first $20,000 of covered loss before the policy responds. Hurricane deductibles are usually triggered when a named storm hits within a defined wind threshold and geographic radius. Atlas explains exactly how the deductible structure works on each policy so there are no surprises after a claim.
Many hurricane policies offer business income coverage as a built-in feature or add-on, replacing lost revenue and continuing expenses when a covered hurricane event forces business operations to halt. This coverage matters especially in Hawaiʻi where repairs after a major storm can take months because of shipping, permitting, and contractor availability. Atlas reviews the business income portion of every hurricane policy to make sure the limits and time periods match how long your business could realistically be closed after a major storm.
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