Though rare in many areas of the country, earthquakes can be highly destructive. Commercial property insurance covers some natural events, such as wind damage, but you must purchase separate coverage if you want protection against earthquakes. This Q&A  will help you weigh your risks and determine if you need this type of coverage. In addition, ask your insurance professional if your business should consider adding earthquake insurance.

Natural disasters can be devastating to businesses. While damage caused by some types of natural events—such as lightning or wind—will usually be covered by commercial property insurance, you need a special policy if you want protection from flood damage. This Q&A will help you understand this type of coverage and determine whether your business needs it.

In today’s global marketplace, more and more businesses rely on overseas suppliers. If your company’s operations depend on the timely delivery of raw materials, parts or finished products from distant locations, then your business could be hurt when these goods are delayed or fail to arrive altogether. Furthermore, a significant downturn in supply often results in increased costs for acquisition of the materials needed to continue operating. It can also result in partial or complete shutdown of facilities lacking the resources to operate.

For small businesses without specialized risks, a Business Owners Policy—or BOP—may offer the basic property and liability coverage that you need. But if your company is growing in size and complexity—or you face specialized risks due to the nature of your business—you may want to consider purchasing a Commercial Package Policy, or CPP for short.

Whether you’re running a part-time, seasonal or full-time business from your home, you’ll want to carefully consider your risks and insurance needs. Starting a business—even at home—can be a challenging venture, and having the right insurance can provide a financial safety net and peace of mind.

It may sound like a dance craze from the 1950s, but a BOP—a Business Owners Policy—can protect your small business against today’s most common risks. Fire, burglary, liability and business interruption losses are all covered under a BOP.

Since a BOP is prepackaged, there is only one policy to review and it can be more cost effective than purchasing separate policies. Additional coverage can be added in the form of endorsements or riders.

The types and amount of insurance that you need for your small business are based on several factors. Ask yourself: What type of business are you in? Where is it located? Do you have employees?

Earthquakes and coverage

Earthquakes can cause much harm to home structures. They can damage housing foundations and collapse walls; even relatively mild tremors can destroy furnishings and belongings.

Aside from the danger of flooding, heavy rainfall can also lead to mudflow, basically creating a river of mud; and landslides, which are caused by the movement of the destabilized land—due either to gradual erosion or an accumulation of water.

Don’t confuse mudflows with mudslides as there are distinct differences.  Mudslides occur when a mass of earth or rock moves downhill, propelled by gravity. They typically don't contain enough liquid to seep into your home, and they aren't eligible for flood insurance coverage. In fact, mudslides are not covered by any policy.

After a car accident your insurance company may recommend you use a direct repair program (DRP) and offer the option of using generic auto parts for the repair. It's important to understand these options and their insurance ramifications.