Commercial Property Owners — Not Sure about Their Insurance Protection

Nationwide recently released a survey on the owners of commercial property. It revealed their take on bad weather and natural disasters.

The survey defines commercial property owners as people owning property, business owners and people building new construction. It found 66% of those surveyed are either very, or extremely, worried about the severe weather and natural disasters that might happen in their area.

• 69% are concerned about high heat waves
• 69% worry about serious flooding
• 65% say major wind damage is a troublesome worry

And with those risks come these concerns:

• 56% worry about business interruption
• 41% are concerned about water seeping into their building and flood damage
• 33% see structural damage as the biggest worry

Worry is one thing. Being prepared is quite another. Less than half of those deemed as commercial property owners say they are fully prepared for any of these weather issues:

• 49% feel prepared for damaging winds
• 48% say they are prepared for flood
• 42% believe they are prepared for ice storms and a wave of severe cold weather
• 41% say they are prepared for hail damage
• 27% believe they are prepared for tropical storms and hurricanes
• 17% think they are ready for a tornado

The good news is businesses are trying to be more prepared:

• 61% have installed backup power systems
• 60% put weather-resistant windows or doors in the building or buildings
• 57% have put an emergency plan in place or updated their current plan
• 54% have put extra bracing on their buildings in case of severe wind

A big concern for most responding to the survey is their insurance policy and if it is sufficient.

• 80% think their insurance will protect them from severe weather losses
• However, just 39% believe they are fully protected

Cost of being properly insured is also an issue with those surveyed

• 41% say the affordability of commercial property insurance has improved the last year
• However, 60% are still looking at ways to better manage insurance costs
• 55% say to lower premiums they are willing to reduce coverage or insure less property

Nationwide’s head of Risk Management and Technical Specialization, Jason Ragsdale said the good news is most of the property owners say they are consulting an independent insurance agent — like those of the PIA — to review their coverages and discuss risk management options.

“Businesses have made meaningful investments to strengthen their properties, and that’s encouraging,” he said. “But resilience goes beyond the building itself. It requires a comprehensive approach that includes risk mitigation, continuity planning and insurance coverage that reflects today’s evolving risks.”

Source link: Nationwide — https://bit.ly/4t11ACx