The wildfires that devastated California this past fall caused between $9 billion and $13 billion worth of damage, according to various estimates. About 2,000 businesses suffered losses from the Camp, Woolsey and Hill fires, according to California Insurance Commissioner Dave Jones. Beyond those that suffered property damage or were directly in the path of destruction, many other businesses were doubtless affected. After any high-impact disaster, the economic ripples spread wide.
Among the indirect sources of disaster-triggered loss: Closed roads can prevent customers from reaching you. You may suffer delays leading to extra expense and lost income if the components your business relies upon cannot be made or delivered to you. These sources of business income loss can occur nationally and internationally after any major disaster.
Given the variety of ways in which a natural disaster can impact your business, it is important to understand how your insurance policies cover business income loss, and to consider all sources of potential loss and the coverage that your insurance policies provide. All of these factors need to be considered when you prepare your insurance claim.
Below are five tips for dealing with natural disasters and their impact on your business.
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