In Hawaiʻi, hurricane season runs between June 1 and November 30, with tropical storm warnings typically issued 36 hours in advance. These weather events can be violent and lead to significant property damage and disrupt normal business operations.
While it may not be possible to completely prevent storm damage, you can reduce the financial impact with the right business insurance. The aftermath of tropical storms can be devastating for small business owners.
However, the right combination of commercial insurance policies can provide the protection you need to keep your business afloat once the storm has settled.
Let’s take a look at some tropical storm insurance strategies for small business owners in Hawaiʻi.
Prepare for Wind Damage
Tropical storm winds can range from 39 to 73 mph, with hurricane winds exceeding 74 mph. These strong winds can damage roofing, windows, and other building components as well as peel away siding and uproot trees.
Commercial property insurance helps cover damage to your building and other business property caused by high-velocity winds. In the event of a windstorm, property insurance covers the building, everything inside of it, and everything just outside of it.
Examples include furniture, equipment, computers, fencing, landscaping, exterior signs, inventory, and important documents.
To minimize damage to your property caused by tropical storms, it’s important to take the necessary steps to prepare for possible storm damage.
Check the condition of your siding and roof and make repairs and upgrades as needed. Remove branches near the building, anchor and brace large outdoor furniture, and install shutters on the windows.
Back up those documents that could be lost during the storm, whether they’re on paper or saved to a computer. Cloud storage and off-premise storage backups can help prevent important files from getting damaged or lost.
Anticipate Business Disruptions
Business disruptions often follow tropical storms. Both the short-term and long-term economic and physical impacts of a hurricane can make it difficult for small businesses to resume operations.
With business interruption insurance, business owners can replace income lost if they are temporarily unable to reopen after a covered loss, such as property damage.
This type of policy may also cover other operating expenses, such as loan payments, payroll, taxes, relocation costs, training costs, and rent, mortgage, or lease payments.
In addition to having the right insurance, you’ll want to develop a business continuation plan. Consider what your small business needs to survive in the days and weeks after the tropical storm.
In Hawaiʻi, a business continuation plan should identify potential risks, determine how those risks will affect operations, and what safety measures will be needed to mitigate the risks.
Plan for Water Damage
Storm surges, combined with powerful waves, can cause extensive water damage to water adjacent small businesses. Water can damage drywall, soak insulation, soil carpets, and cause mold and mildew growth.
It can also pose serious health and safety risks, such as electrical and chemical hazards. Unfortunately, most commercial property insurance policies do not cover flood damage.
If you need flood coverage to protect against tropical storm damage, consider purchasing a separate policy. Flood insurance generally covers physical damage to the building, including damage to walls, floors, ceilings, and the electrical, plumbing, and HVAC systems.
You’ll also want to take certain precautions when a storm is announced to reduce related risks. This typically means disconnecting the main electrical feeds to the building to prevent electric shock and potential fire due to damaged equipment.
Similarly, shut off the natural gas supply to reduce potential losses from fires or explosions.
Protect Against Losses
Small businesses on the Hawaiʻi coasts can suffer significant losses due to tropical storm damage. Without the proper insurance, they could be required to pay out-of-pocket or forced into permanent closure.
There are steps business owners can take to reduce loss and recover faster after natural disasters, such as:
Review Your Coverage: If it’s been several years since you’ve reviewed your business insurance coverage, speak with an experienced agent. A local professional can assist you with tailoring your coverage limits to your business’s needs.- Consider Optional Policies: While most small business owners know about standard policies, such as property insurance, they often overlook optional coverages, such as inland marine insurance to replace goods that may have been washed away during transit.
- Secure Federal Coverage: When possible, seek supplemental insurance in addition to your commercial property damage for events like flooding. The National Flood Insurance Program (NFIP) can help businesses recover flood damage costs.
Call Atlas for Tropical Storm Coverage
Because of our location in the center of the Pacific Ocean, multiple tropical cyclones develop each year near our islands, putting us at risk. If you’re a small business owner in Hawaiʻi, you understand the importance of protecting your investment from loss.
As a local provider, Atlas Insurance Agency offers comprehensive policies tailored to protect small businesses from the impact of tropical storms. Call our experts at (808) 400-6634 to see how we can help you get proper coverage.