Each September, businesses across the country are reminded that preparation is not optional – it’s essential. National Preparedness Month, led by FEMA’s Ready Campaign , encourages individuals, families, and organizations to plan for emergencies before disaster strikes. While many businesses take this time to check evacuation routes, update emergency kits, and review continuity plans, there’s one element that is often overlooked yet absolutely vital: commercial insurance .

At MartinoWest, we see insurance not just as a contract, but as the financial backbone of preparedness. Without the right coverage, even the most detailed emergency plan can crumble under the weight of unexpected costs.

Why Insurance Matters in Preparedness

Disasters don’t always knock politely – they often arrive without warning. Whether it’s a wildfire, cyberattack, or supply chain disruption, your ability to recover quickly hinges on your insurance strategy. Here’s how commercial insurance fits into your preparedness plan:

1. Protecting Physical Assets

Natural disasters like fires, windstorms, or hail can devastate office buildings, warehouses, and inventory. Commercial property insurance helps cover repairs or replacements so you don’t have to shoulder those costs alone.

⚠️ Important Note: Standard property policies do not cover floods or earthquakes. To be protected, you’ll need to purchase separate flood or earthquake coverage, depending on your region’s risks.

Pro Tip: Review your property policy carefully and talk with your insurance advisor about endorsements or specialty policies that address risks specific to your area.

2. Covering Business Interruption

Even if your property is insured, downtime can be just as damaging as physical loss. Business interruption coverage compensates you for lost income and operating expenses while you rebuild or relocate. Without it, weeks of closure can permanently shut the doors for many small and medium businesses.

⚠️ Important Note: Business interruption is not sold as a stand-alone policy—it is added as an endorsement to a Business Owner’s Policy (BOP), commercial property policy, or package policy.

Pro Tip: Understand your policy limits and make sure coverage aligns with your projected recovery timeline.

3. Shielding Against Liability

Emergencies don’t just cause property damage, they can create liability risks. If an employee or customer is injured during a disaster, lawsuits can follow. General liability insurance protects your business from legal costs and settlements that could otherwise derail recovery efforts.

⚠️ Important Note: Employees are not covered under general liability policies – their injuries are handled through Workers’ Compensation insurance.

Pro Tip: Evaluate whether your current liability limits match the scale of your operations. Larger contracts or client bases may warrant higher protection.

4. Protecting Your People with Workers’ Compensation

Preparedness isn’t just about safeguarding buildings and equipment, it’s also about protecting your team. If an employee is injured during a disaster or while helping with recovery efforts, Workers’ Compensation insurance ensures they receive medical care and wage replacement, while also shielding your business from potentially devastating claims.

Pro Tip: Review your Workers’ Comp program regularly. A high experience modification factor (X-mod) can drive up costs, but proactive claims management and risk reduction can lower both your risks and premiums.

5. Safeguarding Against Cyber Threats

Preparedness isn’t just about storms or earthquakes anymore. A single cyberattack can halt operations, compromise sensitive data, and cost your business its reputation. Cyber liability insurance covers expenses like data recovery, customer notification, and legal fees, ensuring you can recover without crippling financial loss.

Pro Tip: Pair insurance with strong cybersecurity practices – multi-factor authentication, regular backups, and employee training – to strengthen your defense.

Steps to Take During National Preparedness Month

Preparedness doesn’t have to be overwhelming. Use September as an annual checkpoint to align your business continuity plan with your insurance coverage.

1. Assess Your Risks
Every industry faces unique threats. Contractors may need to prepare for jobsite accidents, while tech firms may prioritize cyber resilience. Identify what’s most likely to impact you.

2. Review and Update Policies
Policies written years ago may no longer reflect your current operations. Meet with your insurance advisor to ensure coverage keeps pace with your growth and regional risks.

3. Strengthen Your Business Continuity Plan
Insurance should work hand-in-hand with your operational plan. From temporary relocation costs to protecting data offsite, make sure coverage supports your continuity strategy.

4. Train Your Team
Make sure staff know emergency procedures, communication protocols, and who is responsible for handling claims. Designate a manager or supervisor to document damages with notes, photos, or videos.

The Bottom Line

National Preparedness Month is about more than creating checklists – it’s about building resilience. For small and medium businesses, resilience begins with commercial insurance. The right policies ensure that when disaster strikes, your business has a financial safety net to recover, rebuild, and thrive.

At MartinoWest Business & Insurance Solutions, we specialize in tailoring insurance programs that protect contractors and business owners against the unexpected – because preparedness isn’t just about surviving the storm, it’s about making sure you’re still standing long after it passes.

Ready to review your preparedness plan? 

Contact us today to ensure your insurance is ready for whatever comes next.