When you sustain property damage at your business, it is of course unsettling and inconvenient. However, you also know it is something that will bring with it very costly consequences in a variety of ways. Unfortunately, many business owners are unprepared for what they can expect when property damage occurs. To make sure you have an in-depth understanding of how property damage at your business can impact you now and, in the future, here is all you need to know.
When a property is damaged at your business, you know it is vital you get repairs made as fast as possible. Depending on what was damaged, this can run into thousands of dollars, even if you have insurance coverage. Whether it is broken windows, a roof that may have collapsed, or other types of damage, having to pay for these repairs right away can bust your budget in a hurry.
Higher Insurance Costs
After you have called on experts like Roof Cat to examine your roof damage and arrange to make the necessary repairs, your insurance company may come calling to inform you about your increased premiums. Even if the damage occurred through no fault of your own, this may not matter to the insurance company. Once the company determines your business to be a bit riskier to cover, you’ll need to come up with more money to pay your premiums.
If your business sustained property damage and it resulted in employees, customers, or others sustaining serious injuries, one of the costliest consequences may result in your business suddenly facing a slew of personal injury lawsuits. If this happens and you are found to be liable, you could be ordered by a court to pay thousands of dollars in damages to victims. In the worst-case scenario, this could lead to you closing your business for good.
If property damage to your business was so extensive that it forced you to close down for a few days or much longer, you will encounter lost revenue with each passing day. While you may be able to weather the financial storm associated with a short-term closure, one that lasts several weeks or more could be something from which your business may not recover.
Since property damage can lead to dire consequences financially, it is best to do all you can to keep your commercial property in excellent condition. Should something happen, having a plan in place to deal with the financial implications can make all the difference.