Frequently Asked Questions About Commercial Insurance
Although earthquakes are uncommon, they may cause significant damage. Wind damage is covered by commercial property insurance, but earthquakes need additional coverage. The following questions and answers will assist you in assessing whether or not you need this coverage. To determine whether your company needs earthquake insurance, contact your commercial insurance agent.
Questions and Answers About Earthquake Coverage
How important is it for me to get earthquake insurance?
Around 20,000 earthquakes a year, most minor, are recorded in the United States, according to the US Geological Survey. Yet, there have been earthquakes in 39 states since 1900, causing damage in all 50 states. If your company's location is in an area prone to earthquakes, such as California, or along a geological fault line, earthquake insurance may be necessary.
When a company's operations are disrupted, what Does business interruption insurance for an earthquake?
In most cases, the contents of your building and other company property, such as inventory, will be covered by your insurance company. Based on the insurance terms, financial losses a company sustained as a result of an earthquake may be compensated for. After the deductible (the amount you must pay before insurance kicks in) has been met, the policy will begin paying for damages. Policies that cover earthquake damage often
have high deductibles—ranging from 2 percent to as high as 20 percent of the value of your building, depending on its location, age, and condition.
