Business catastrophic liability insurance, or simply “business catastrophe insurance” is an insurance option useful in the event of a low-probability, high-cost event such as a natural disaster, terrorist attack, war, hurricane, large earthquake, or volcanic eruption. Your business’ geographic location and proximity to frequent catastrophes will often inform which type of catastrophic liability insurance you will need for your business. While most of us would prefer not to think about the prospect of a large-scale tragedy ruining their business, the reality is, according to climate.gov, that “Since 1980, the U.S. has sustained 219 weather and climate disasters where the overall damage costs reached or exceeded $1 billion (including adjustments based on the Consumer Price Index, as of December 2017). The cumulative costs for these 219 events exceed $1.5 trillion.”
Business catastrophic liability Insurance insures your business where your other policies, namely hazard insurances, fall short. For example, some brands of hazard insurance may exclude hurricanes or floods, yet your business is in a region particularly susceptible to these calamities. Catastrophic liability often includes things events such as property and merchandise damage as well as bodily harm. Amidst the alarming and increasing prevalence of natural disasters around the world, more and more uninsured business owners are vulnerable to losing their hard-earned business to major storms, fires, floods, etc. Many scientists believe that this trend will continue in the absence of drastic economic and political changes globally. A wise investor is one who takes into account the reasonable likelihood of a catastrophe occurring and plans accordingly.
If your feel as though your organization is at even a minor risk of loss due to some unforeseen catastrophe, you owe it to yourself, your family, and your employees to invest in a business catastrophic liability insurance policy as soon as possible. Make the right decision for your business to avoid unusually high losses today.