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Necessity of insurance heightened after outbreak of tornadoes

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After a rash of tornadoes throughout the Midwestern U.S. on Nov. 17, the need for business property owners to acquire insurance is relevant now more important than ever.

Illinois residents suffered significant damage to homes and businesses as tornados struck across the state during a severe weather event that claimed at least six lives, according to the Chicago Tribune. By the night's end, the National Oceanic and Atmospheric Association (NOAA) reported that witnesses recounted at least 80 tornadoes, 40 storms involving hail and more than 375 severe wind situations that resulted in damage or unsafe conditions. 

Russell Schneider, director of the National Weather Service's Storm Prediction Center said the storm impacted about 53 million residents spanning across 10 states, inflicting damage on a high number of homes and commercial businesses. 

Among the affected businesses was a middle school in Tippecanoe County, Ind., whose gym and portions of its roof were dismantled during the storm, according to the New York Daily News.

Although the wave of tornadoes passed in under a few hours, businesses considering themselves safe from harm may want to reconsider after a report from the Worldwatch Institute predicted an increase in drought, cyclone and other severe adverse weather conditions. 

Insurance could save millions in property damage
According to the report, extreme weather in the U.S. accounts for more than two-thirds of overall global insurance losses. From Hurricane Sandy, to Midwestern droughts and tornadoes, over $100 billion in damages was reported with insurance companies covering $58 billion of the costs during 2012. 

Insurance companies have doled out relatively high payments when compared to the financial losses associated with property damage as pervasive as what was incurred during the recent tornadoes. The number, intensity and frequency of adverse weather conditions predicted to occur in congruence with climate change certainly shines a light on the vital role that property damage insurance fills for commercial property owners. 

When business owners launch a new enterprise, property insurance is often one of the first types of protection a company purchases. Property insurance covers contents inside the building such as products, furniture, fixtures and more while a more comprehensive policy also covers the cost of the building and its structures. By having this added layer of protection, commercial property owners help themselves by cutting down on the high costs of restoration, rebuilding and rebuying that can be associated with severe property damage. 

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