From hurricanes to severe tropical storms, weather events can escalate quickly. This year, the National Oceanic and Atmospheric Administration (NOAA) reports a 60% chance of an above-normal Atlantic Hurricane season, leading to potential service disruptions and client safety concerns.
As a spa or salon owner, it’s crucial to recognize these risks and implement appropriate protections for yourself, your team, and your customers. While the right insurance coverage is a must, there are several things you can do to plan and prepare for weather-related disasters.
Ask questions
Do you know your biggest risks in the event of a severe weather event? Ask yourself these critical questions.
- Is your structure particularly at risk of physical damage?
- Can your organization operate without power?
- Can your employees safely get to work?
- Do you have an emergency response plan in place now?
- Have you implemented and demonstrated a hurricane preparedness drill for your employees?
Understanding these risks can help you implement the appropriate layers of protection, such as an emergency preparedness plan, employee training, safety drills, and other storm-resistant upgrades to potentially lower premiums and improve resilience.
Fill the gaps
Your standard insurance policy is not a one-size-fits-all solution when it comes to the risks associated with severe weather and flooding. Protect your business from financial loss by addressing the common gaps and misconceptions in coverage before disaster strikes.
- Standard insurance policies do not cover flooding or water damage from sewer backups or water seeping through the foundation. Be sure to secure a separate flood insurance policy and sewer backup coverage.
- In hurricane-prone areas, standard commercial property policies may exclude or limit wind damage. Salons in these regions should evaluate their existing policy for windstorm coverage or an endorsement.
- Income lost due to business closure after a covered disaster is not typically covered by standard property insurance. Purchase business interruption insurance (also known as business income insurance) to cover lost income, ongoing expenses (like payroll), rent, and temporary relocation costs.
- After a major disaster, rebuilding costs can soar due to high demand, inflation, and scarcity. Check that your current policy limits are enough to cover the potential repair or replacement costs.
Work with your broker to ensure you have comprehensive protection in place by regularly reviewing your policies to identify gaps in coverage. Consider increasing coverage limits for your property and business interruption to account for rising costs and extended recovery periods. By understanding these common coverage gaps and taking proactive steps, salon owners can better protect their businesses from the devastating financial impact of storms and natural disasters.
Kathy Lopez, Account Manager for SASSI, the Salon and Spa Specialty Insurance program at Brownyard Group. She can be reached at klopez@brownyard.com.
