In the event of a natural disaster such as a flood, tornado, fire, or hurricane, business owners find out very quickly they are essentially completely dependent upon their insurance claims adjuster for the restoration of key physical components required for their operation. Companies that take a proactive approach to protect all their physical assets will more likely survive a catastrophic event, than those who simply assumed paying their insurance bill meant complete protection.
The Truth About Insurance Companies
Although insurance companies run comforting commercials that make it appear as if they will always provide complete protection for a catastrophic event, the reality is a bit more sobering. Especially when a large-scale disaster occurs and many claims are submitted simultaneously. Claims adjusters become very discriminating when determining what they believe is the true value of an asset. In fact, unless your business can prove otherwise, a claims adjuster will assign the lowest value possible for every item in a claim.
According to the Federal Emergency Management Agency (FEMA), businesses that cannot demonstrate documented losses often receive far less financial assistance than they deserve after a declared disaster. The burden of proof falls squarely on the business owner, not the insurer.
How to Fight Back For Assets
The best way for a business to combat a reluctant insurer is to have a complete inventory of every physical asset, especially those for which they expect to receive compensation.
We advise you to take inventory of every valuable asset on your business’s property. This ensures that all damaged items are accounted for. Make sure to include the make, model, and serial numbers of these assets. Additionally, document any software licenses that you own.
Remember to list every detail about these items. Claims adjusters are instructed to give you the lowest value they can for your item, based on the description you provided. By being descriptive, you ensure that you get the true replacement price for your assets. The U.S. Small Business Administration echoes this guidance, noting that businesses eligible for disaster loan assistance must be able to substantiate repair and replacement costs for real estate, equipment, fixtures, inventory, and other business assets.
It is also critical to store all this information in a safe place, somewhere it is easily accessed after the disaster event is over. The safest place for this information is in a cloud-based storage system, which remains accessible even if your physical office is damaged or destroyed. The next safest option is an off-site storage location that is geographically separated from your primary business location.
The Last Step
Before heading to a safe place to ride out the disaster, the last step is to make a video recording of every room of the physical location(s) of your organization. By having a video recording that shows the condition of every asset, along with the inventory data stored in the cloud, business owners will be much more prepared to prove the real value of any damaged or destroyed assets. However, this is in no way a substitute for creating a detailed inventory list. It should serve only as additional evidence.
Not sure where your current vulnerabilities lie? A free network risk assessment from WheelHouse IT can help identify gaps in your preparedness posture before a storm season hits.
Interested in more tips on preparing for natural disasters? Check out 7 Tips for Preparing Your Business IT for a Hurricane.
Start Protecting Your Business Before Disaster Strikes
A natural disaster does not give advance notice, but your preparation does not have to wait either. Documenting your physical assets, storing that data securely in the cloud, and capturing video evidence of your workspace are three steps any business can take today. Paired with a solid IT continuity plan, these measures put you in control of your recovery instead of at the mercy of an adjuster’s low estimate. The businesses that come out stronger on the other side are almost always the ones that prepared before the storm arrived.
Is Your Business Ready for the Next Disaster?
WheelHouse IT helps businesses in South Florida and New York protect their data and assets with enterprise-grade IT solutions. Let’s make sure your technology is disaster-ready.
