Are You Covered?

From the beginning of June until the end of November, the coastal United States is vulnerable to destructive storms. In 2005, Hurricane Katrina became infamous for being one of the costliest and deadliest hurricanes in U.S. history. Katrina was the sixth-strongest Atlantic hurricane ever recorded and the third-strongest hurricane on record that made landfall in the United States. Last year the hurricane season was predicted to be busy, but storms were infrequent and not nearly as destructive as in prior years. The National Weather Service predicted an active season for 2007, and the forecast shows an increased possibility for tropical storms and hurricanes.

Now is the ideal time to review your insurance policy and ensure your tanning salon is adequately covered. Ask your agent if your policy covers the perils of wind and hail. If it does, check the deductible. Knowing the details of your coverage, limits and deductibles before you experience a loss will eliminate any surprises if you need to file a claim.

If your primary insurance policy excludes wind coverage, there could be options available through another source. For example, a “wind pool” association or specialty carrier may be the best bet. In addition to coverage for wind and related damage, a complete insurance package should include business-income and extra-expense coverage.

Most commercial policies do not include flood insurance, but many salon owners don’t realize their standard business policy doesn’t protect them until it’s too late. Flood insurance can be purchased at any time; however, there’s a 30-day waiting period from the date of application before coverage goes into effect. It’s essential to plan ahead and get coverage from your agent before flooding occurs.

Create an inventory of your possessions and property. Consider making a videotape of the interior and exterior of your salon, describing each area as you record. Digital photos are another option and easy to store on disc. Keep all of this documentation in a safe place away from the site. Should you need to file a claim, a set of records including receipts, bills and pictures will help establish the price and age of your property, as well as identify items that need to be repaired or replaced.

Once a storm watch has been issued, it’s time for action. Loose objects inside trash cans and signs can be dangerous in strong wind, causing property damage and injuring people. Protect windows and doors from flying debris and heavy wind by covering them with plywood or other shielding. Inside the office, elevate valuables to save them from water damage. Back up essential computer files and records, and store them at a safe location. If your on-site computer is damaged or destroyed, you’ll need a duplicate of all records, contacts and databases.

Stay tuned to local radio and TV news for current information on the storm’s progress. Once the storm has passed, assess the damage. Take care to drive carefully through debris-strewn areas and watch for fallen power lines, especially in areas with standing water.

Enter the salon with caution, providing there is no chance of structural collapse. Do not use matches, cigarette lighters or any open flame in case of gas leaks, and do not use electricity until your business has been properly checked by authorities. Do not try to remove any tree branches or other fallen debris.

Contact your insurance agent immediately to report any damage. Include a description of the property, and note when and where the loss occurred. Generally, the more information you can provide, the faster your claim can be settled. If possible, take photographs and list damaged items in detail, including office equipment, furniture, computers and retail merchandise. Keep copies of everything you submit to your insurance company as well as all paperwork your insurance company sends you and remember to be patient.

The storms are coming—taking a proactive stance is the only way to minimize your risk. 

For more information or to get a quick, no-obligation quote, call (800) 844-2101 or visit www.universalinsuranceltd.com.