Natural disasters that hit large areas hard are likely to bankrupt many small businesses that do not have adequate insurance.
Everything seems to be going along fine. Business is good. There are plenty of regulars who come to the store and the cash flow is steady and predictable.
This is every business owners dream. However, what happens when the dream turns into a nightmare and a business stops working?
It is not necessarily about the business or any fundamental weakness, which the business has that causes this. It can be something as simple as the weather.
Prior to Hurricane Katrina, many small businesses in New Orleans were thriving. There was a steady flow of tourists to the area. New Orleans was a place to go for music, food, and fun. There were exciting festivals, the most famous being Mardi Gras.
It seems almost unbelievable that one of the five worst storms in the history of the USA could wipe out an entire city. However, that is exactly what happened.
Business owners, who did not have adequate insurance, saw their businesses disappear with nothing they could do about it. The damage to the city was over $100 billion dollars.
This is not the first time New Orleans was flooded. The History Channel reports that New Orleans flooded five times in 1915, 1940, 1947, 1965, 1969, and 2005. It was obvious that flooding in New Orleans was a problem soon to occur again. Yet so many businesses were under-insured.
Be sure to check with the agents at Strack Insurance Services in Arlington, TX to make sure your business is adequately covered for the risk of natural disasters with commercial insurance coverage for damages and business interruption. so you can weather any storm that may arise and continue to operate without having to go out of business.