FGIB:Providing Competitive Earthquake Insurance for Businesses

As an insurance firm located in Southern California, we understand the impact earthquake damage can have on a business, particularly when there is no coverage to respond to the expenses an owner has to shell out to get an operation back to normal. But as we all know California is not the only state that has been shaken. Washington State, Oregon, Oklahoma, Texas, Pennsylvania, Virginia and many others are also vulnerable to quakes. In fact, according to the U.S. Geological Survey, our nation has about 20,000 earthquakes a year—mostly small. That said, since 1900, there have been earthquakes in 39 states, with damage in all 50 states, which is why it’s so important to discuss the need for Earthquake coverage with your insurance advisor.

At Financial Guaranty Insurance Brokers (FGIB), we will meet with you and assess your exposure to earthquake damage and provide you with the coverage options available. The fact is that earthquakes can rock a business even if they aren’t catastrophic. Expensive business personal property can be damaged, sprinkler systems can be set off leading to water damage, exterior coverings such as brick and stucco can be cracked, and your business may have to shut down to repair, causing lost income. Property damage resulting from an earthquake is not covered under standard Commercial Property insurance. For these risks, you need Earthquake insurance.

What’s Covered with Earthquake Insurance

A business Earthquake policy will generally cover damage to your building and to your business property such as your inventory. Depending on the policy, lost business income caused by an earthquake may also be covered. Coverage only begins when damage has exceeded your policy’s deductible—the amount you pay out of pocket before your insurance kicks in. Earthquake insurance policies include deductibles—ranging from 2% to 20% of the value of your building, depending on its location, age and condition.

If your business is located in a fairly low-risk area, Earthquake insurance premiums are much lower here than along the western fault lines, so you may be surprised how affordable coverage is. Of course, if you are located in California, it’s prudent that you have the proper coverage to protect your property and investment.