Perennial hurricanes and typhoons, isolated but powerful tornados, earth-quakes, and floods — the question is not whether, but where and when policy-holders will confront the next natural disaster. In all of these circumstances, careful and proactive attention to insurance coverage considerations could be the key to restoring business operations and weathering the financial storm that inevitably follows the natural one.

Losses will arise not only from the direct damage or destruction of insured property, but also from the interruption of business resulting from that property damage, business interruption caused by damage to the property of important suppliers, customers, and other business partners, extra expenses incurred to resume normal operations, lack of access to property due to damage to buildings, roads, docks, etc., interrupted electric, gas, and water services, and other circumstances depending on the particular business involved.

The business losses will take many forms, and businesses affected should, where possible, seek to maximize insurance recoveries.