Outdoor entertainment venues are naturally at higher risk of damage from the elements. Unfortunately, the costs involved in restoring a business after wind damage aren’t always covered under a standard owner’s insurance policy. Attorney Bill Voss explores the specific challenges for operators of these types of businesses and how owners can get full coverage for wind damage.
Even Minor Windstorms Can Cause High Losses for Fun Parks
Policies that include rain, hail, or snow will often exclude damage caused by wind alone, so it pays to be as specific as possible when selecting your coverage. Check your policy carefully for wind damage coverage options such as:
- All-risk insurance. High winds can cause direct damage by toppling trees and fences, but they can also cause indirect losses. Shattered glass from flying debris, water damage to electronics and prizes, or utility interruption forces several days of closure. Commercial all-risk insurance can be invaluable against win damage. With all-risk insurance, you won’t have to argue semantics or fight over the “exact cause” of the loss—if your damage resulted from something other than the listed exclusions, your claim should be paid.
- Special equipment coverage. Damage to large or specialized equipment such as water slides, roller coasters, billboards, movie screens, or computer networks could easily put you over your policy limit. If buying a higher limit isn’t an option, you may be able to cover each piece of expensive equipment with a separate deductible that covers the full replacement cost.
- Inland marine coverage. Traveling carnivals and stationary amusement parks can both benefit from inland marine insurance, which pays to replace property lost in transit or that was damaged in an offsite storage facility.
- Debris removal. Visitors may be unable to walk around your property safely due to downed trees, spilled refreshments, or large panels that have been ripped from temporary structures. Make sure you know whether your policy will cover the full cleanup costs, including debris removal, stump grinding, and leveling the grounds.
- Commercial vehicle losses. Depending on the size and scope of your operations, you may have a fleet of semi-trucks, a handful of vans, or personal vehicles used for business purposes. You should ensure that your policy covers non-collision costs of vehicle damage (usually under comprehensive coverage), and pays the full replacement cost so you will not have to pay the difference for lost depreciation.
- Theft and vandalism. Winds can damage security lights and cameras, opening the property up to looters, thieves, or vandals after dark. In addition to purchasing a backup generator and robust alarm systems, theft and vandalism coverage can provide an amount to replace any items lost due to opportunists after a covered event.
- Spoilage coverage. If a windstorm caused a loss of power to your property, you may be forced to throw away any refrigerated refreshments or restaurant ingredients. Spoilage coverage pays to replace any unusable comestibles after a storm, including animal feed, tainted water, or even food truck inventory.
- Seasonal or special event insurance. If your business makes the majority of its profits at a certain time of year, seasonal coverage can be invaluable in paying for a loss during your busy season. If you regularly host events such as birthday parties, weddings, fundraisers, or other gatherings, special event insurance can replace the cost of canceled and lost bookings due to wind damage.
- Business interruption insurance. The amount of lost income after a severe weather event can be as much—or more—as the cost of replacing damaged property. Business interruption insurance pays for the lost revenue you would have made if the incident hadn’t forced you to shut down operations, allowing you to continue paying employees and cover extra costs while you make repairs.
Our wind insurance claim attorneys have dedicated their practice to getting as much coverage as possible for property damage and income losses. If you’re tired of fighting a commercial insurance company to get what you are owed, the Voss Law Firm can help you get the compensation you paid for. Fill out our contact form today to get answers to your questions, or start reading your copy of our free book, The Basics of Commercial Insurance Claims.