An alarming insurance industry survey noted that, in just the past five years, one third of commercial property owners wrestled with disaster-related losses. Statistics were even more frightening in states prone to wildfires – half of owners grappled with losses over that span. Brace yourself if your commercial properties are vulnerable to hurricanes: a whopping two-thirds of owners faced disaster-related property damage over the last half decade.
“We advise commercial property owners and managers to plan for disaster rather than in case of disaster,” says Russell Vent, Owner, Paul Davis Restoration of Greater Rochester, New York. “Statistics are not in your favor so it’s unwise to gamble that your property will be the lucky one that escapes impacts. Take a few thoughtful steps now to smooth the claims and recovery process if disaster does strike.”
Establish/Update an Emergency Response Plan (ERP): Paul Davis Restoration provides a free service that develops ERPs specific to your property. Plans outline critical information such as emergency contacts, specific mechanical room information, locations of shutoff switches and a variety of additional details needed in an emergency. Plans also codify special instructions pre-loss, such as areas of your property that should be prioritized, response parking areas and preferred access to the property and its structures. Even better: Paul Davis distributes the plan to your stakeholders.
Secure Important Documents: Many properties still store important records in physical form: historic financial ledgers, deeds, appraisals, tax returns, architectural drawings and the like. Arrange to store these items off-site, or on-site in fireproof, waterproof containers. For better security, convert documents from paper to digital formats supported by cloud-based backups.
Create and Maintain an Inventory Record: Log details – item description, estimated value, depreciation, receipts, maintenance records and location – for all physical assets and equipment on the property. This is an ideal opportunity to relocate assets to a more secure location – placing key documents on higher stories instead of ground floors, for example – or scope out offsite secure storage if disaster looms. Does your property maintain an on-site vehicle fleet? Make arrangements now for urgent relocation if conditions deteriorate.
Review Insurance Policies: Meet with insurance pros to assess coverage and review current risk profiles. Use this opportunity to familiarize your team with policy requirements, too. Identify covered perils – does the policy cover all risks or only specific events? Discuss exclusions, limits and deductibles, as well as what constitutes proof of loss. What types of documentation and prevention of further harm will be needed to meet your carrier’s requirements? Additionally, make sure that your policy grows with your property use. In fact, experts recommend that commercial property owners review coverage annually or anytime significant changes occur on or to the property.
“Our team is ready to discuss how to reduce risks and form a strategy that is specific to your property’s individual needs,” Vent concludes. “Bonus: when we meet, you check off one of the best preparatory steps, which is selecting an experienced restoration company that works well with insurance carriers.”
