Disaster can strike at any moment. The only thing you can control is how prepared you are for it. As a construction company, disaster preparedness can affect you in a few ways. As you design and build, include for the possibility of a disaster in the building after the construction is complete. Specific to your business: be prepared for disaster which might interrupt a project or strike at your company’s headquarters. A disaster can cause huge amounts of damage, delays, and cost. Here’s how to prepare for a natural disaster.

First Have a Plan

Some contractors have it in their contract that they can cease the construction project if disaster makes it infeasible for them to continue profitably. There are several resources available on the SBA.gov site which will be helpful in building a plan for your company’s specific needs. In addition to creating a plan, make sure you perform the following steps to ensure the plan is full proof:

• Review planwith employees to ensure understanding
• Make sure the plan is posted in common areas and online
• Test the plan in a controlled environment
• Periodically review plan
• Highlight the plan when a threat is perceived
• Revise plan as necessary

Having a plan is vital to surviving a natural disaster whether it occur on your construction site or on a piece of property you own.

Coverages You Should Have

Part of the plan should be to prepare for a disaster by properly obtaining and evaluating insurance coverage. There are several coverages you need as a construction company in case of a disaster. Here are some to consider.

Builders Risk Insurance

Sometimes called “course of construction”, builders risk insurance is essentially property coverage for the construction site, materials, and equipment involved in the project. This will is required and will be vital if disaster strikes during the project.

Real and Personal Property Insurance

Often a part of the commercial general liability policy, property insurance is the fundamental insurance a contractor will need to protect the company. This will provide coverage for damage to office furnishings, office equipment, tools, and construction equipment.

Business Interruption

While somewhat limited in scope, business interruption insurance can be the difference between going out of business and surviving. Business interruption insurance is designed to reimburse the policyholder for losses (such as lost income) during an insured event such as a disaster. However: the event which causes the damage must be insured and there must be physical damage for a claim to occur.

Annual Coverage Review

Each year, you should sit down to review your policy with your agent to make sure you still have proper insurance coverage. Your business may have changed or your industry niche might have evolved. Either way, it is important to keep a rein on your coverage needs as time goes on.

If you have questions about the coverages you need or would like to review your insurance policy, be sure to contact us at H&K Insurance, in Watertown, MA. We offer all coverages needed by construction companies in addition to the full range of insurance policies. A member of our expert team will walk you through the process to ensure you and your business are sufficiently protected.

John Herlihy has served H & K Insurance Agency Inc. clients since 1982. John, the Vice President, is engaged in all phases of the agency’s operations and management. He is dedicated to providing excellent service. John’s professional designation of CIC (Certified Insurance Counselor) signifies to clients a competent professional and their assurance of quality assistance with their insurance needs.