Odd ways businesses get hacked.

3 ways your Small Business can be Hacked

If your small business has eve been hacked, you know the importance of cyber security for small business. You more than likely know that data breaches are no longer just a problem for big business. Any business can be hacked and the ways in which a business is hacked are very widespread. Here are 3 ways your small business can be hacked that are within your control to stop.

Hacked

Not periodically resetting a password

A few years ago there was a hack that occurred between two baseball teams, the St. Louis Cardinals and the Houston Astros. This hack occurred because a rogue employee (Chris Correa) within the Cardinals Organization guessed what the password of a former Cardinals Employee who now works for the Astros (Jeff Lunhow). It has never been confirmed what exactly the password was and if Correa knew what Lunhows’ password was when he was with the Cardinals, but Correa has admitted that he guessed the correct password for Lunhows’ log in credentials with his new team the Houston Astros.

This could have been prevented by simply resetting a password periodically and not using the same password for all log ins. Here is one tactic, many people use to remember their password when it has to change. Start with a password like:

BaSkeTBaLl_2741+3657

The word Basketball can change with the seasons. For instance, you could use the word baseball in the Summer and Football in the Fall. You could also keep the same password and change the special character. In this example you would change the _ and the +. Be careful using this method because you are not changing much about the password.

Old Employees Still Have Network Access

When an employee leaves your organization there shoul dbe adequate steps taken to ensure the terminated employee no longer has access to any networks or internal files. There also may be several Sales as a Service (SAAS) companies out there that your business has an account with, but the terminated employee is the only employee who used the account. Having a way to keep access to those accounts or to change the password is important.

Third party vendors getting hacked

Two of the largest data breaches in history, Home Depot and Target, were started by a third party vendor being hacked first. In both of these cases a small business was hacked several weeks or months previously and the criminals waited until they realized they had access to the much larger database through this vendor partnership. In the case of Target it was a local HVAC company that serviced a few of their locations in the Pittsburgh area. Home Depot had a vendor partner that processed the credit and debit card transactions at their self check out stations in most of their locations.

Drones and Aerial Photographs

Drones are helping the insurance industry process claims much quicker in disaster ridden areas.

In the wake of three devastating hurricanes this fall, many insurance carriers have begun to use drones and and other aerial vehicles to aide in the claims process. The use of drones have sped up the turn around time for claims processing dramatically.

Drones and Aerial Photographs

Unfortunately, this fall far too many small businesses are beginning to understand the need for protecting their small business with adequate insurance. These same business owners are also getting more familiar with the claims process between the business, the insurance agency and the insurance carrier. If they did not know before, they are becoming familiar with at this time, the fact of how crucial it is for a claim to be processed quickly. Getting victims back to everyday life can have an enormous impact on the communities impacted by natural disasters. This is what the insurance industry is striving to help the communities hurt by the hurricanes over the past few months.

Technology is helping in many ways. First, drones are helping carriers take both still photos and video to observe properties they are not physically able to visit. The carriers can use the information they get from drones, both in the form of aerial photographs and video, to create 3D images of the impacted area. Technology is now allowing them to do this at scale and determine what percentage of a property is destroyed without ever setting foot on the property. Now, this is not possible in all circumstances, but it is possible in many. Every case that is sped up, frees the adjusters to move on to other victims who desperately need help.

According to an article with the Insurance Journal, a recent KPMG (Klynveld Peat Marwick Goerdeler) Survey found, “the two biggest challenges facing insurers are the difficulties in assessing property damage and managing customer expectations”. As a result of the same survey insurance executives overwhelmingly said, ‘To improve claims efficiency and communication with customers, insurance executives cited the use of drones as one of the technologies they will utilize to help quickly settle claims’. Drones are helping with these exact problems facing the insurance industry, by allowing those within the industry to show the victims, with pictures and video, what they are doing and how they are going about doing it.

Through the use of drones many companies within the industry are able to drastically speed up the processing time for claims by allowing the insurance claims processor to get a majority of the claims process done without the ability to physically visit the property. Once they are able to get out to the property, insurance professionals can use the drone to examine several properties in a particular area in a short amount of time. This allows the claims adjuster to spend a short amount determining what properties are most devastated and will need the most of his time. It can also allow the adjuster to determine if another property does not need any further observations on his part and free up time for him to observe other areas that are severely devastated.

This is just the tip of the iceberg for how this and other technologies will help the insurance industry, better serve their clients in the future.

Claims Made Vs Occurrence

Have you ever wondered what the differences are between a Claims Made Vs Occurrence Based Liability Insurance Policy?

The choice to choose a Claims Made Vs Occurrence Based Liability Policy can have an enormous impact on your business. Making certain your business has the proper coverage can make an enormous impact to your bottom line, when a claim occurs. Claims Made Vs Occurrence Policies are typically in relation to a general liability, professional liability, and employment practices liability insurance. The types of businesses who are more likely to need this type of coverage include contractors, architects, engineers, attorneys and medical professionals.

Claims Made Vs Occurrence Based Insurance Policies

Claims Made

A Claims Made Insurance Policy covers claims filed during a given period of time. In most cases, a claim must be filed during the term of the claims-made policy in order for it to be covered by the insurance carrier. If the claim is filed two months after the policy has ended, the claim will not be covered. The positive to this type of policy is price. Claims Made Policies are generally less expensive compared to Occurrence Based Policies.

Occurrence

An Occurrence Based Insurance Policy covers claims that arise from damage or injury that takes place during the policy period. This is regardless of whether the claim was filed during the term or after. A claim can be filed many years later and still be covered, as long as coverage was in place during the time of the occurrence. This is important for professionals like architects who give professional advice and services to physical structures that may have a problem years down the road. If it is found the problem with the structure was the result of the engineers faulty work, the engineer can be liable for damages. With an occurrence based policy in place this would be covered under most circumstances.

For most business owners, an occurrence policy is more appropriate and is commonly purchased. Only using a claims based policy can be a bit of a gamble. In most instances, the additional cost of an occurrence policy form is minimal compared to purchasing a claims made policy.

Why are both Claims Made Vs Occurrence Based Insurance Policies Offered.

Why are both Claims Made Vs Occurrence Based Insurance Policies offered?

The primary reason claims made coverage is still around is because there is a demand and because insurance companies may only be willing to write certain types of risk on a claims made basis. This is because it is much easier for an insurance company to estimate price for insurance premium and measure their profitability with a claims made policy compared to an occurrence policy. This is because there is a clear start and stop date to coverage. With occurrence coverage, it can take years or even decades for insurance companies to measure their profit and loss. In the most simple terms, a business owner who purchases an occurrence policy for one year will always be insured for future claims while a claims made policy only covers the insured for that time period unless they purchase additional tail coverage. If the business owner is willing to take the risk in exchange for a lower premium, claims made policies are still offered.

Disadvantages of Claims Made Vs. Occurrence

The disadvantage of a claims made policy is that it is more complex. A claims made policy requires a strong understanding of the policy language used in the insurance contract. Additionally, a claims made policy is triggered by the insured’s awareness of potential claims and notification of the claim to the insurance company. Failing to properly notify the insurance carrier could void the coverage. The main disadvantage to an occurrence policy is the cost. On average Occurrence policies cost 35 percent more then a claims made policy.

Benefits of Claims Made Vs. Occurrence

The main benefit of a claims-made insurance policy is that it offers flexibility. The coverage is portable. You can take the coverage from one insurance company to another if you decide to switch carriers form year to year. The primary benefit of an occurrence policy is that it is permanent. The period of time your business is insured under an occurrence policy is protected forever by that particular policy. With an occurrence policy the business never needs to renew or buy a tail when you leave.

Boo – Halloween is coming!!!

What kinds of risk does the Halloween Season cause your small business to face?

My Insurance Question - Happy Halloween

For some people, Halloween Season is their favorite time of the year and their favorite holiday. For some businesses it offers an opportunity for them to get a larger than normal amount of business. With these opportunities for additional business come additional risks to your business. Here are three tips for how to protect your business during the Halloween Season.

Halloween

Seasonal Halloween Businesses

There are many businesses that pop up for a short amount of time to help people celebrate the Halloween Season. Corn Mazes, Pumpkin Patches and Haunted Houses are all businesses that pop up, but may be a part of another business like a farm. If you decide one year to host a corn maze and you do not inform your insurance agent, you may be opening up yourself or your farm business to an enormous amount of risk. Speaking long and honestly with your insurance agent can help limit these risks.

Speak long and honestly with your Independent Insurance Agent

It is always a good idea to speak long and honestly with your insurance agent when you are purchasing commercial insurance. If you do not take the proper time to tell them about all of the tasks your employees do and do not partake in, your agent is left to guess how risky your business is. The insurance agent is in the business of analyzing risk, so it is in their best interest to always assume more risk. This can cost you considerably in additional premium if you are not classified properly. It can also cause a claim to not be covered if you are partaking in an activity that is not covered by your general liability policy or any other policy you may or may not have.

Special Events Coverage

If your business is hosting an event related to the Halloween Season, you can buy special event insurance just for that event. This can go for any event you have with your employees. If you are having third aprties who are not employees at the event, you can be opened up to third party liability. This can be the case even if you are only going to have employees and their families attending the event. You need to protect your business from any injuries that may occur at the event. You should consider whether or not to offer alcohol based upon the risks you are comfortable with.

Happy Halloween from the friendly ghosts.

The Halloween Season can bring about additional opportunities for your business to generate revenue. Depending upon how you plan to target this market may or may not cause additional risk for your customer. In many cases it is a good idea to run the ideas by your insurance agent to make sure you are covered by your insurance policies. If you are not covered they should be able to help you determine how much risk you are comfortable taking on. These conversations should be able to help you determine what risks you face and if the additional revenue you gain is worth that risk.

Help is on the way in Florida

Not much good news has come out of the state of Florida for the past month. If there ever was a state that needed some good news it is the state of Florida. Well yesterday the business community got some much needed relief in the form of an announcement by the National Council on Compensation Insurance (NCCI). The announcement recommends the Florida Office of Insurance Regulation (FLOIR) to decrease Florida Workers Compensation Insurance Premiums by 9.6%.

Florida Workers Compensation Insurance

A 9.6 % rate decrease has been proposed by NCCI for Florida Workers Compensation Insurance Premiums.

The rate decreases on Florida Workers Compensation Insurance will not be across the board. Some industries will see larger increase than others. According to FLOIR and first reported by the Insurance Journal rate level changes by industry group are as follows:

Manufacturing: -10.3 percent
Contracting: -6.9 percent
Office and Clerical: -11.3 percent
Goods and Services:-10.4 percent
Miscellaneous: -8.1 percent

This is good news for business owners in Florida because, the workers compensation system in Florida has been in flux for more than a year. About a year ago NCCI recommended a 17.1 % increase on workers comp rates last August. The amount of increase that eventually went through was 14.5 %. This increase was in response to three main issues. Those issues were 2 court cases and a state senate bill (Castellanos vs. Next Door Company, Westphal v. City of St. Petersburg and Senate Bill 1402).

Castellanos vs. Next Door Company was a court case that involved Marvin Castellanos who was an injured employee who sued Next Door Company. This court decision ruled invalid a previous court ruling from 2009 which put in place a mandatory attorney fee schedule. The overturn of this ruling meant judges no longer have to stick to the mandatory fee schedule and now can award additional compensation for attorney’s fees. Insurance carriers anticipated this to cause them to pay out more in the future and resulted in additional premiums.

Westphal v. City of St. Petersburg was a case that found the 104-week statutory limitation on temporary total disability benefits to be unconstitutional. The Florida Supreme Court reinstated a 260-week limitation. This Increased the amount of time an injured employees will get partial salary benefits by an additional 156 weeks. This additional 156 weeks of coverage caused the OIR to approve an average increase of 2.2 percent statewide.

Senate Bill 1402 caused the additional 1.8 percent increase on premium for workers’ compensation was related to updates within the Florida Workers’ Compensation HCPR Manual. This increase was approved as part of Senate Bill 1402.

The decrease proposed this week reflects frequency and experience data that pre-dates the Castellanos and Westphal decisions. Data regarding the impact of Castellanos and Westphal will continue to mature and will more than likely be reflected in future rate filings. For now Florida will experience a much needed decrease in workers compensation insurance premium.

Dry Cleaners

It is never an enjoyable endeavor to think about the risks your small business faces, but ignoring those risks will never make them go away. This is especially important if you own a dry cleaners. Making sure that you know exactly how much your business is and is not covered can be the difference between your business being closed for a week and your business having to close its doors forever. There are many types of risk a small business may face. The risks you will face in the dry cleaning industry may be dramatically different than if you operate a beauty salon, a florist or even a food truck.

If you operate in the dry cleaning industry, there are many risks that are unique to you and your business. Take for example if a piece of machinery breaks and you have to be closed for an extended time, will your insurance cover the lost revenue during the down time? If your business damages a clients clothes and your business gets sued, will your insurance cover the lawsuit? If an employee is hurt on the job, how much and what types of medical coverage will your workers compensation insurance pay for? These are all questions you need answered in order to adequately insure your business.

Dry Cleaners face enormous risk. Get the answers to your small business insurance questions at My Insurance Question.com

The first step to finding the best insurance coverage for your dry cleaning business is to find the right insurance agent. It is wise to consider an independent insurance agent who partners with many different carriers. Some agents only partner with one carrier or a select few carriers. This limits the amount of carriers competing for your business. An independent agent typically interacts with between 5 and 30 carriers. This allows them to shop your coverage around so you don’t have to. They can use this leverage to get more coverage at rock bottom prices.

Once you have found an experienced independent insurance agent with whom you trust you will more than likely have some questions for them to answer. At this point in the process it is important to spend an adequate amount of time with them describing exactly what it is you do and do not do on a daily basis. You know your business better than anyone else and it is wise of you to never assume someone else knows all of the intricacies of your operations. This meeting does not have to be exhaustive, but you should take enough time so that your insurance agent can first properly classify your business and second they can search for the proper coverage for your unique needs. You may be comfortable with more risk than another business owner and the only way your agent will know this is if you communicate your priorities to him up front. If you are the type of business owner who wants the most coverage no matter the cost than you need to communicate that to them as well. The agent can only find coverage to suit your needs as best as you express those needs to him. If you do not take the appropriate amount of time to give him an accurate idea of your operations and the amount of coverage you want than you are leaving your risk management to a guessing game. This is never the best way to protect your most prized investment.

Here is a list of all the classification codes used by cry cleaners for insurance purposes.

SIC Business Insurance Codes:

• 7216- Drycleaning facilities- Except Rugs

• 7216- Drycleaning and Laundry- Coin Operated

NAICS Liability Classifications:

• 812320- Dry Cleaning and Laundry Services (not coin operated)

• 812310- Coin Operated Dry Cleaning and Laundry Store

Business ISO General Liability:

• Code: 14732- Dry Cleaners and Laundry Stores Front (receiving station)

• Code: 14733- Dry Cleaners and Laundry Store

• Code: 45678- Dry Cleaning and Laundry Plants

Common Workers Compensation Class Codes:

• 2586- Dry Cleaning Plant- All Employees

• 2589- Dry Cleaning or Laundry- Retail Store and Drivers

• 2590- New York- Dry Cleaning or Laundry Store

• 8017- Retail Store (Pick-up and Drop-off only)

Painters

Painters or painting, staining and decorating contractors fill a great role within the construction industry. As the economy continues to recover the need for painters continues to grow. With the growth in this industry comes an increase in risk and a need for more insurance coverage. The risks in this industry are much different than if you run an auto repair shop or an HVAC company.

There are certain types of information you will need for a general liability and workers compensation quote. Here are 5 policies every painting contractor needs to secure in order to completely cover them and their employees.

Find the best info about insurance coverage for painters at My Insurance Question.

General Liability

General liability insurance is normally the first coverage any small business purchases. This is no different for a painting contractor. In most states this coverage is required by law to be in business. General Liability coverage will cover your liability to third parties for accidents that occur as a part of normal business operations. For painting contractors who work at remote locations, it is important to speak with your independent insurance agent about what exactly is and is not covered when you are operating on the premises of a third party. If you interact with a general contractor who has many contractors operating at one location it is important for you to make sure all of the other contractors have the proper insurance required for the work taking place.

Inland Marine Coverage

Inland marine coverage will cover any specialized equipment you or your employees use as part of your daily operations. This is an important coverage to secure, especially if you have expensive specialized equipment, because most basic policies will not cover this equipment when it is damaged. For instance if you have a van or a vehicle with a trailer carrying extra tools, when a wreck occurs your commercial insurance policy will cover your liability to the other person hurt in the accident and to fix your vehicle, but it will not pay to cover your specialized equipment. This is a coverage your agent can help you determine if you need it or not. Depending upon how much the equipment costs, you may be able to do without this coverage.

Commercial Property Insurance

Commercial property insurance is different from your personal home owners insurance policy. It is different primarily because it is sold one of two ways: Replacement cost or on an agreed upon value of the property. It may be tempting to go with an agreed upon value to save on premium, but this is almost always a mistake. This is because the agreed upon value is usually what the property is appraised at currently. This amount does not include the cost to tear down the dwelling and remove all the debris after a disaster occurs. This additional cost can be extensive.

Commercial Auto Insurance

Commercial auto insurance is also different from a personal auto policy. Commercial auto can be purchased for vehicles your business owns, but it can also be purchased for employees who drive their own vehicles or rented vehicles while on the job. This type of policy is called hired and non-owned auto coverage. Again, with this coverage it is important to take some additional time to speak with your agent about the daily operations of your business. If you are honest with them about what you do on a daily basis they can do their best to prevent occurrences from taking place where your business or your vehicles are not covered.

Workers’ Compensation

Workers compensation insurance is the second coverage a business purchases because like general liability insurance it is required by law in most states. Workers compensation is like general liability, but it applies only to your employees and not to third parties. If your employees are injured at work as a part of what would be deemed normal business operations, workers compensation coverage will pay them for some of their lost wages (typically 60%) and medical expenses. Depending upon the state in which you operate in and the accident occurs, there are time limits on how long the employee can collect workers compensation benefits. Having adequate safety programs and a strong return to work program will help your business from experiencing excessive damage to your experience modification rating.

Here at My Insurance Question you can find the best advice on the insurance policies all painters need.

Recommended Insurance Programs for Painters

Minimum recommended coverage:

• General Liability

• Inland Marine Coverage

• Property Insurance

• Commercial Auto Insurance

• Workers’ Compensation

Other coverages to consider for Painters:
Business Personal Property, Employee Dishonesty, Contractors’ Equipment (Inland Marine), Umbrella Liability, Commercial Auto Liability, Goods in Transit, Environmental Impairment Liability, Stop Gap Liability and Employment Practices Liability Insurance (EPLI).

4 Ways Your Business is Exposed to Risk

Employee Related Risk

First and foremost, in order to combat risk you have to find the right staff. Sometimes finding the right staff is more than just identifying the most qualified and offering them the highest salary. Sometimes the best fit for your business is not the person with the best resume, the most experience or the best education. Employee turnover can be very expensive. If you are looking for a person to be committed to the business it is in your best interest to ask pointed questions about the candidates short, medium and long term goals for themselves and the company. You should be very careful about the ways in which you state these questions because the wrong wording can cause your business to wind up in the middle of an employment lawsuit. Once you have found the right staff it is just as important to keep them satisfied enough to remain with your organization for an extended time. This includes not only salary and benefits, but determining what is important to them individually and finding creative, cost-effective ways to satisfy those needs.

Depending upon what industry your business operates in, you may face an enormous amount of risk. Learn about the best ways to protect your business from those risks by reading My Insurance Question.

Revenue/Financial Risk

Direct financial risks have to do with how your business handles money. Do you offer credit to a customer. Do you bill your customers after every interchange, monthly or quarterly? Keeping your income coming in from a diversity of clients and not just 2 or 3 can help prevent dramatic cuts in revenue from losing one client. Financial risks can also include interest rates and foreign exchange rates depending upon your industry. Having a plan in place for these risks will ultimately contribute to the long term success or failure of your business.

Skydiving is one type of risk many people face in their business life. Find out how to mitigate risk at your small business by reading My Insurance Question.

Operational Risks

Operational risks result in many ways. Many start with internal failures. An internal failure starts with the internal processes, people or systems and can cause damage internally or externally to clients and vendors as well. Operational risks can also result from unforeseen external events such as transportation systems, internet, power or communication systems failure. These can cause a delay in or failure to deliver goods or render services. Having a plan in place for when these situations arise is crucial to the long term success of your business.

Downhill Skiing is another way many people face risk in their personal lives. In the business world you can learn about protecting your business from risk by reading myinsurancequestion.com.

Reputational Risk

Losing your company’s reputation or community standing can cause damage to your company that is not repairable. Reputations take a long time to build and they can be crushed at a moments instance. During a time when social media has the ability to cause negativity to spread like while fire more quickly than ever it is crucially important to constantly monitor your reputation. Your reputation is important both on and off line. google alerts is one way to monitor when and if your business is mentioned online, but there are also companies that offer software as a service products to monitor your businesses reputation and notify you quickly when damaging situations occur online. If you are going to have a presence on social media you need to have trained professionals to regularly monitor it and have systems in place for how to deal with negative reviews or comments.

Rental Property Insurance

When you own rental property with it comes a certain amount of risk. There are ways to lessen the amount of risk your or your business faces by properly preparing your business and purchasing adequate insurance coverage. Here are 3 types of insurance you or your business need to secure when you own rental property.

If you own Rental Property, you need to determine what kinds of insurance your business actually needs?

If you or your business own rental property, there are certain insurance coverages you need to secure. Find out the best info at My Insurance Question.com

Three Policies every rental property owner should have.

General Liability Coverage

General Liability Insurance in most cases is the first type of insurance a business or investor purchases. General Liability and Workers’ Compensation Coverage are required by law in 48 out of 50 states. For this reason, most business owners start with these two coverages and later determine if they need additional insurance. GL Insurance covers a property owner for any liability they might face to thirds parties. Some liabilities you may face include when a tenant or visitor are injured due to the landlord’s negligence, when a property maintenance issue results in a tenants’ injury or personal property loss or when a tenant is injured as a result of the landlord’s failure to keep the premises safe and in good working order. Now these are just a couple of the types of liability a property owner may face. Other risks you or your business face include losses due to fire, storm, tenant or employee theft and even discrimination lawsuits filed by tenants or employees. A lawsuit does not have to be legitimate to cause you or your business to incur enormous legal costs. Having the proper insurance in place can limit the damages to you or your business if you do face a lawsuit.

Commercial Property Insurance

Commercial Property Insurance is frequently the second coverage a property owner will secure. When looking to acquire a commercial insurance policy it is important to secure an accurate valuation of the property. A Commercial Property Insurance Policy are just a little bit different than a personal home owners policy in that they are sold on either a replacement cost or on an agreed upon value. For most businesses the replacement cost policy is almost always the best type of policy to secure. This type of policy will pay to not only rebuild the property but also to demolish and haul away any and all debris. This additional cost can be substantial.

Business Loss of Income

Business Loss of Income Coverage is the third and final type of insurance all rental property owners should purchase. A business loss of income insurance policy will cover you or your business for the income lost during the period when a rental property is uninhabitable. For example, if your building is damaged by a hurricane; this coverage kicks in to cover missed rent payments you or your business would have collected while the property is being repaired. Frequently this coverage is paid based upon documented actual revenue, which is good for property owners because you have a lease stating how much revenue the property generates. Depending upon the policy you can collect payments for lost rent for up to 12 months after a loss.

Can Natural Disasters hurt your small business?

Here are 5 Natural Disasters that can wreak havoc on your Small Business.

With the presence of hurricane season upon us and the two examples we have in Hurricanes Harvey and Irma, now is a good time to have a conversation with your insurance agent about just what risks your small business faces when it comes to natural disasters. The risks are going to be different depending upon where your business operates, but now is as good of a time as ever to determine what risks you face and what coverages you may or may not need. Here are 5 types of disasters every business should prepare itself for.

Key West is one area that frequently gets hit by hurricanes. Small businesses in this area have a knack for dealing with natural disasters.

Hurricanes

Obviously, if you live in the Midwest, you may not need coverage to protect your business from a hurricane. But the effects of a hurricane can travel very far inland, depending upon the strength of the storm. The states of Tennessee and Kentucky do not have a coast line, but they are feeling the effects of Hurricane Harvey at this very moment. If you live in a coastal community, it is important to find out what exactly your hurricane policy does and does not cover. You may need an additional flood policy to deal with storm surge and flooding that comes after the tornado. A short conversation with your agent should help you determine what all policies you need.

Tornadoes

Tornadoes are a type of natural disaster that can reach far and wide. They are not isolated just to the Midwest. Tornadoes can impact a small area of one small town or they can damage many areas through a state or region. Predicting them is difficult and the only true way to protect your business is to have the proper insurance coverage in place. Tornadoes are another type of disaster that also have a need for flood insurance.

Fires

Fires can come in the form of forest fires or local fires due to man-made causes. Certain areas in the Western United States are more prone to fires because of the dry nature of the climate in this part of the country. Forest fires can damage wet areas too as was seen last fall when many areas in Tennessee and North Carolina were ravaged by forest fires near Gatlinburg, TN and the Great Smoky Mountains National Park.

Earthquakes

Earthquakes are areas that are little more predictable to know if you need the coverage or not. Areas that are on or near a fault line are more likely to need this coverage. Some faults are more likely than others and carry more risks. Also, with the growing popularity of fracking technology to dig for oil in some areas of the country, earthquakes are now appearing much more frequently and in areas that are not near a fault line. If this type of technology is being used in your area, it is something you should speak with your insurance agent about in order to properly protect your business.

Floods

Floods are another type of natural disaster that should be prepared for. In most communities, if you live in or near a flood zone you are required to carry coverage. These are not the only businesses who would be wise to purchase this coverage. The damage from floods can be far-reaching and in many cases it can cause a business to close its doors permanently.