Feeling Steady on Shaky Ground

What is an earthquake?
An earthquake is caused by the sudden movement of the tectonic plates in the earth’s crust. Tectonic plates are always moving but sometimes they get stuck at their edges due to friction. When the stress on the edge overcomes the friction, there is an earthquake. The earthquake is a release of energy in waves that travel through the earth's crust and cause the shaking of the ground we feel.

Earthquake Insurance - what is it?

“Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property.”

According to the reports from the USGS (U.S. Geological Survey) Earthquake Facts during the year 2015, California experienced 6,386 earthquakes of Magnitude 1.5 or greater.

California is routinely hit with earthquakes and because of the devastating and costly effects of earthquakes, many insurers have expressly excluded damage caused by seismic events from coverage under standard Property Policies. However, coverage for this type of catastrophic loss event is available in a specialized commercial insurance policy.

Key coverage includes:

• Loss or damage to your covered property (real and business personal property)
• Business Income Loss (your ongoing business expenses through the restoration period)
• Expenses incurred for Debris Removal of covered property
• Earthquake Sprinkler Leakage
• Flood insurance can be added as an option

Businesses owners should regularly discuss earthquake coverage with their broker and include the coverage as a part of their yearly business plan. Determining your needs related to insuring against a catastrophic event can make all the difference in keeping your doors open for business.

As knowledgeable brokers Shorepoint explains to their clients what and how the policy covers them in the event of an earthquake.

Call Shorepoint Insurance Services today at 714.430.0035 for a quote or review of your current policy.