What exactly is a hurricane deductible?

A hurricane deductible may appear on property policy covering either a personal residence or a commercial structure. It applies only in the event of a named storm, which is defined as a storm system that has been declared to be a hurricane by the national hurricane center.


I am a tenant in a large shopping center. I have made permanent additions to the leased space that will remain if I should decide to move. How do I cover these additions since they are not business contents?

These additions are called tenant improvement and betterments and are separately listed in your property policy.  They also typically are viewed by the insurance company as part of the building and the premium is developed using the building fire rate. It is very important that you review your insurance contract to determine if these improvements are properly included in the coverage portion. If you only list them as business contents, the contract may not respond.


I have a large walk in freezer/cooler. What happens when the power is interrupted and the food thaws out and spoils?

The property policy excludes damage caused by “changes or extremes in temperature” as well as “the failure of power ... if the failure of power takes place away from the described premises." To remedy this problem, you will have to add a spoilage coverage endorsement. Options for coverage in this endorsement include breakdown or contamination, power outage or both.

My restaurant provides delivery within a 5 mile radius. We utilize independent drivers and their vehicles and they work for tips exclusively. How do I properly cover these individuals?

The problem here is the fact that the drivers utilized may not be covered properly at all. If the driver has a personal auto policy, then most likely, this utilization is excluded. That means that you may be held financially responsible for any accident they are involved in. You can add and endorsement ‘hired and non-owned” that will fill the gaps in this situation.


I have a payroll company provide workers compensation for my employees. Is there a problem with that?

There could be. The contract spells out, amongst other things, when a new employee is covered by the payroll company’s works compensation. Since the payroll company views the new employee as theirs, they establish when the new employee will be covered for workers compensation. Usually, the payroll company has to be notified in writing before the new hire is accepted. Should the new hire have a work related accident before the payroll company “accepts” him/her, the restaurant owner would pay for workers compensation benefits.