Jake Parsons of the Claro Group’s Houston office says it’s crucial for companies to review the schedule limits within their property policies. Such limits determine how much money a company can recover for business interruptions due to storm damage.
“What we recommend is that companies update these on an annual basis, and this is especially important if there’s a company that’s made substantial property, plant, or equipment improvements or acquisitions, or if the company’s experiencing growth in sales, in that you need to evaluate this so that your insurance is growing and adjusting as your business is.”
Parsons also emphasizes the importance of reporting any loss immediately, even if it appears to be less than the policy’s deductable.
“You might have a disruption or an interruption in your production or your ability to conduct business, which would make your loss substantially more than you might have thought if you were just looking at the property piece of your loss.”
Hurricane season begins June 1.