What Is Business Hazard Insurance?

If you are embarking on a business venture or expanding an existing business, you should know what business hazard insurance is and why you need it. Sometimes called commercial property insurance or business property insurance, it provides financial compensation in the event of a disaster. Similar to the way homeowners insurance covers your residence, business hazard insurance covers the property that houses your business.

A Corpus Christi commercial insurance claims lawyer can help you assess your business property and the potential risks it might face. The right policy can help you protect your commercial venture from fire, theft, flooding, and other types of damage. If you are a business owner who already purchased business insurance, your lawyer can help you tap into your policy when needed. 

What Types of Property Damage Does Business Hazard Insurance Cover?

Business real estate can include properties that range in size from retail storefronts to large corporate buildings. According to Texas Department of Insurance (TDI) guidelines, a business hazard insurance policy can provide coverage for the following:

• Fire damage
• Explosions 
• Storm damage
• Theft 
• Lost income

Every insurance policy is a contract designed to meet the specific needs of your business. You should be able to count on it when you need it most.

Understand How Your Business Hazard Insurance Identifies Covered Losses

As stated, every policy is different, which makes understanding the specific details of your policy crucial. You need to know what your policy considers a covered loss (ones for which they will cover the costs of repairing or replacing). 

Read your policy in detail, including all fine print. It will tell you what is covered and what is not, which can make filing a claim easier. For example, you may need a separate policy for flood damage, windstorm damage, or crime damage (e.g., robbery).

Your Business Hazard Insurance Could Include These Coverage Options

The state of Texas experiences weather events that could pose a threat to real property. If your business is along the Gulf Coast, it might experience a higher risk than other areas of the state. 

Depending on the location and needs of your company, you might also add the following coverage as options in your existing insurance policy or as standalone policies:

• Coverage for hail damage
• Coverage for hurricane damage
• Coverage for pipe damage
• Coverage for tornado damage
• Coverage for water damage
• Coverage for window damage

Assess your business and its specific needs. Choose a policy that fits and take time to read everything related to your coverage and understand how to file a claim when necessary.

Types of Businesses That Can Benefit from Hazard Insurance in Texas

The state of Texas does not require the purchase of business hazard insurance. It can be a good way to protect your business and its property. Companies that should consider this form of business protection include:

• Small businesses
• Home-based businesses
• Sole proprietorships
• Mid-size businesses 
• Corporations of varying sizes

The policy you purchase can protect you from a serious and potentially costly financial burden that could otherwise threaten your business or lead to its closure. 

Take Any Necessary Measures to Protect Your Commercial Property

In the aftermath of a natural disaster, fire, or other damaging event, you may need to file a claim with your insurer. First, ensure everyone is safe and take measures to protect your property from further damage, including:

• Boarding up windows and doors
• Draping tarps over damaged roofing
• Removing debris and other hazards

Know What Your Business Hazard Insurance Says About Filing a Claim

According to Insurance Information Institute (III) guidelines, you can generally expect the filing process to include:

• Contacting your insurance company
• Contacting the fire or police department, if applicable
• Obtaining and completing insurance claim forms
• Creating a detailed list of your covered losses
• Completing and submitting a Proof of Loss form
• Meeting with your assigned insurance adjuster
• Keeping receipts for any protective measures you undertook
• Obtaining several bids for repairing your property

Read your policy and provide a copy to your lawyer. It will contain specific details for filing a claim with your insurance provider. It may also provide reporting, notification, and filing deadlines that must be met. Adhere to these guidelines to protect your right to compensation. 

Consider Hiring a Commercial Property Insurance Lawyer in Texas

You could attempt to resolve a business hazard claim on your own. If you choose to work with a lawyer, they can take on all the challenges of preparing and filing your claim. On your behalf, your lawyer can:

• Communicate with the adjuster for you
• Manage all paperwork related to your claim
• Respond to information and evidence requests

Your lawyer can also represent you during settlement negotiations. They can field offers and weigh their feasibility. They can also ensure your claim is accurate and negotiate the best possible outcome for you.

Get Legal Support When Filing a Claim at No Out-Of-Pocket Cost

An initial consultation with a commercial insurance attorney is typically available at no cost. It is an opportunity for a local attorney to learn about your business and the recent damage it suffered. 

A consultation is also your opportunity to learn more about a prospective attorney and law firm. Be prepared to discuss your claim in detail with a team member and to ask any questions you have. 

Get Help Choosing the Right Business Hazard Insurance

As a business owner, you need insurance in place to protect your commercial property inside and out. Before choosing a policy, you need to know what business hazard insurance is, how much you need, and the best time to buy.

Learn more about protecting your commercial venture from theft or damage. Contact our consultation team at Carrigan & Anderson, PLLC, to explore your insurance options.