What are some specialty offerings that help independent agents customize products for clients who want business protection from disasters?

Most policyholders do not understand that business interruption does not apply if there was no direct physical loss to their covered property. For instance, if a major storm impacts an area and power is out for an extended period of time and there is no direct physical loss to the policyholder's business, there is no coverage for the period of time the business is closed due to the interruption of power. The agent and policyholder should know that there are companies that offer coverage for these types of situations.

Utility services – time element, which is an endorsement that covers losses for an event in which winds break down a power line or a water main is broken, including loss of income and expenses, up to a predetermined time limit or until the power or water service is restored
Utility services – direct damage, which is an endorsement that's an extension of property insurance, providing protection against damage to property resulting from an interruption of any of the utility services named in the policy as a result of a covered cause, such as a windstorm

Why does this information serve as great tools for independent agents to use when talking to clients about business interruption and other forms of insurance beyond basic property insurance?

Most small-business owners are not well prepared for natural catastrophes. A majority (68 percent) of small-business owners don't have a written disaster recovery plan — even though nearly half of those surveyed said it would take their business at least three months to recover from a natural disaster.

Special Reports /

Nationwide survey reveals small-business owners lack a disaster recovery plan

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