David DeMott: Hurricane preparation tips for Florida businesses

Living in the beautiful Sunshine State means accepting the risk of hurricanes.

With NOAA predicting an 85% chance for an above-normal 2024 Hurricane Season, starting June 1, it’s important for homeowners and businesses to be prepared.

For business owners in particular, it’s crucial to be proactive in safeguarding operations and ensuring employees’ and customers’ safety. It’s essential to plan for hurricanes and secure appropriate insurance coverage — contact your agent for an insurance checkup and don’t delay in securing flood insurance.

Flood coverage

Floods can happen anywhere it rains, not just in coastal areas. Hurricane season amplifies this risk. Consider flood insurance even if you’re not in a high-risk zone. The National Flood Insurance Program (NFIP) data shows that nearly one in three flood claims comes from low-hazard areas.

Given Florida’s dynamic risk landscape, it’s critical to revisit your insurance policies regularly. Note that standard policies do not cover floods, so understanding your property’s floodplain is essential.

While NFIP has a 30-day waiting period, the private flood market, including the surplus lines insurance market, does not. These markets offer broader coverage solutions without the NFIP’s restrictions, such as coverage for loss of use and business income.

The role of surplus lines insurance

The E&S (excess and surplus lines) market plays a vital role in providing flood insurance options that exceed NFIP’s basic offerings. This market is particularly active in covering commercial risks, large limit risks, and high-value homes.

Private flood insurance through surplus lines continues to fill gaps when needed, offering consumers and businesses robust solutions for flood-related challenges.

Other preparation tips for businesses

— Backup power: Obtain a generator and ensure it has plenty of gas or oil. Use heavy-gauge extension cords to keep essential equipment running.

— Office supplies: Stock up on water, snacks, and other provisions. Keep a large bucket for water in case the toilets won’t flush and have hand sanitizer available.

— Communication plans: Ensure customers can reach you even if your phones are down. Back up your files and practice accessing them remotely.

— Physical protection: Before leaving the office, move electronics off the floor, away from windows, and cover them with plastic. Place sandbags in front of doors to prevent flooding.

— Insurance knowledge: Understand your insurance coverage thoroughly to avoid discovering gaps when it’s too late

— Be sure to have digital copies of your insurance policies saved with claims contact information.

Consider removing or moving highly critical business items (servers, financial instruments, essential equipment) to another location or the most protected location in the building (no windows)

Take all threats seriously. Storms develop and turn quickly!

Steps to Take After a Major Storm

— Insurance documentation: Notify your insurance agent immediately. Document the state of your business with photos and detailed records.

— Evaluate the state of critical infrastructure in your business (servers, power supply, etc.).

— Employee welfare: Check on your employees to ensure they’re safe and have what they need.

— Business security: Secure your business location and mitigate any ongoing damages cautiously.

— Be a good neighbor; all Floridians are in this together!

By preparing now, you can help mitigate the potential hardships caused by hurricanes and ensure your business can weather the storm. For more hurricane preparedness tips and insurance information, visit myfsla.com/hurricanes.

Together, we can build infrastructure that is resilient to rising sea levels and stronger storms, ensuring a safer future for our businesses and communities.

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David DeMott, CPCU, AMIM, ASLI  AU, ARM, ARe, of GridIron Insurance Underwriters, is the president of the Florida Surplus Lines Association and serves on the advisory board for the USF School of Risk Management.