Surviving Disaster, The Value of Commercial Property Insurance
A disaster can strike without warning and change everything in an instant. Many businesses closed by a catastrophic
storm or significant event don’t survive the blow. At SERVPRO, we know exactly what it takes to restore a commercial
enterprise to its preloss condition. We also understand that having the right insurance coverage for your commercial
property in place can ensure that you have the resources you’ll need to recover from a catastrophe. Do you?
PREPARING FOR SURVIVAL WITH COMMERCIAL PROPERTY INSURANCE
In the aftermath of a disaster, it’s only natural for business owners to prioritize mitigating their losses and reopening
their doors. After all, time is money for a business, and every hour of lost productivity hurts. However, rushing your
insurance settlement can be a costly mistake. A commercial property insurance claim is a complicated business
transaction. It’s imperative that you take the time to carefully review your policies for all available coverages. This
guarantees that nothing is overlooked and that you receive the entirety of what you bargained for when you purchased
your commercial property insurance coverage.
The benefits received from your insurance company can play an essential role in sustaining your company in the
disaster’s aftermath and in funding its recovery. Therefore, time spent investigating and documenting, examining the
ins and outs of your insurance policies, and familiarizing yourself with the specific requirements for making a claim
so that you secure the maximum settlement is generally time well spent. Commercial property insurance policies can
cover many things:
• Property damage. This coverage can include damage to inventory, buildings, fixtures, furnishings, machines and
• Ordinary payroll coverage. Employees are a valuable resource for a company. This coverage allows payroll to
continue for a period while the business is closed.
• Extra Expense. Intended to help offset expenses involved in returning to normal operations, this coverage can cover
the costs of mitigation efforts, any increased costs incurred by continuing to do business in the wake of a disaster, or
the expense of temporary relocation.
• Business interruption. When a business is closed, its revenue stream is impacted. Ideally, this coverage should
offer the funds needed to maintain the business while its operations are suspended. It generally pays the continuing
operating expenses and the expected profit for a period.
• Contingent business interruption. Businesses don’t operate in a vacuum. This provides coverage for extra costs and
lost profits resulting from damage to a third party’s property when you are dependent on that third party to deliver,
manufacture or purchase your materials or products. It may also come into play when you depend on the third party
to attract customers.
• Loss of rents. When renters are not required to make rental payments because a property has been rendered
uninhabitable by a disaster, this coverage pays for that lost income.
• Loss of ingress or egress. This offers benefits when access to a property is prevented as a direct result of a covered
• Extended period of indemnity. This extends the period of restoration defined in the standard business interruption
policy, increasing the duration of your benefits.
• Utility services. Interruptions of services from a critical utility like power, water or electricity can interfere with
operations. This protects against losses triggered by interruptions.
• Civil authority. When a mandatory evacuation or other action by a civil authority bars access to the property, this
coverage comes into play.
COMMERCIAL STORM DAMAGE RESTORATION
Even with the safety net provided by proper insurance coverage, you’ll want to get back to business as usual as soon
as possible. At SERVPRO, we specialize in making it seem like the disaster never happened. Our Commercial Large
Loss Division is always ready to step in and handle any size disaster with a fast response, seamless communication,
appropriate mitigation efforts and expert restoration services. Our strategic, professional response keeps your
restoration costs lower and enhances our efficiency as we work to return your commercial property to pre-damage
condition. We’re also a preferred vendor for many insurance companies.
Disasters may be unpredictable, but SERVPRO thrives in delivering a consistently effective response. Available 24/7,
we are always ready to provide superior commercial restoration services. Contact us today to learn about our services,
create a READY Profile for your business or request our assistance.
The Value of Commercial Property Insurance