If you have a business in West Texas, how do you know if your business insurance policy provides the best protection for where you live?
Business insurance (i.e., commercial insurance) is essential for any business owner. It is especially important for businesses located in Midland, Odessa, and surrounding areas.
We enjoy our way of life out here and wouldn’t have it any way else. However, the region is prone to a variety of natural disasters, including tornadoes, floods, and wildfires. These disasters can cause significant damage to businesses when they roll through. Without adequate insurance, business owners could be left financially devastated.
Specific Risks
When choosing a business insurance policy for you, carefully consider the specific risks that your business faces. In West Texas, businesses should consider coverage for the following.
Property damage
This type of coverage protects your business’s physical property from damage caused by fire, wind, hail, and other disasters.
Business interruption
This type of coverage pays for lost income and other expenses if your business is forced to close due to a covered disaster.
Liability
This type of coverage protects you from lawsuits if someone is injured or their property is damaged on your property.
Workers’ compensation
This type of coverage pays for medical expenses and lost wages if an employee is injured on the job.
In addition to these standard coverages, businesses in West Texas may also want to consider the following:
- Flood insurance: Flood insurance is not typically included in standard business insurance policies. However, if your business is located in a floodplain, you may want to consider purchasing a separate flood insurance policy.
- Tornado insurance: Tornado insurance is another type of coverage that is not typically included in standard business insurance policies. If your business is located in an area prone to tornadoes, you may want to consider purchasing a separate tornado insurance policy.
- Wildfire insurance: Wildfire insurance is another type of coverage that is not typically included in standard business insurance policies. Should your business location sit in an area prone to wildfires, you may want to consider purchasing a separate wildfire insurance policy.
When choosing a business insurance policy, it is important to make sure that you understand the terms and conditions of the policy before you sign it.
Are There Any Unique Considerations Regarding West Texas Business Insurance?
In addition to the risks mentioned above, businesses in West Texas should also consider the following unique factors when choosing a business insurance policy:
The High Cost of Living
The cost of living in West Texas is higher than in many other parts of the country. This means that businesses in West Texas may need to purchase more insurance coverage to protect themselves from financial loss. The cost of housing in West Texas is relatively high, especially in urban areas like Midland and Odessa. This is due to a number of factors, including the high demand for housing in the region, the limited supply of available housing, and the high cost of construction materials. It may cost more on average to repair or rebuild your business structure.
The Remote Location
Many businesses in West Texas are located in remote areas. This can make it difficult to get emergency repairs done quickly, so businesses in these areas may need to purchase more insurance coverage to protect themselves from financial loss in the event of a disaster.
The Climate
The climate in West Texas is extreme, with hot summers and cold winters. This can put a strain on businesses’ equipment and infrastructure, so businesses in this region may need to purchase more insurance coverage to protect themselves from financial loss.
Carefully consider the unique risks that their businesses face. As a business owner, you can choose the best business insurance policy to protect yourself from financial loss.
Additional Tips
Here are some additional tips if you own a business in West Texas:
- Keep your business insurance policy up to date: Your business insurance policy should be reviewed and updated on a regular basis. This helps to reflect any changes in your business or the risks that you face.
- Document your assets: In the event of a loss, you will need to be able to document your assets in order to file a claim. This includes keeping receipts for major purchases, taking photos of your property, and keeping a detailed inventory of your inventory.
- Have a plan in place: In the event of a disaster, it is important to have a plan in place. This includes knowing who to contact, what to do with your employees, and how to recover your business.
- Get help from a qualified professional: If unsure about what type of business insurance coverage you need, or if you have questions about your current policy, you should contact a qualified insurance professional. They can help you assess your risks and choose the right insurance coverage for your business.
Mike Lively Agency owns a business in West Texas, so we know what good coverage looks like. We help do for others what we do for ourselves.
That’s the West Texas way and we’ll gladly help you find the right protection where needed.
Contact us for a review of what you currently have.
Stay covered, West Texas.
