Florida-based insurance startup Assured Risk Cover (ARC) is introducing a new commercial insurance policy for small businesses in Florida.
The parametric insurance product is being sold under ARC’s StormPeace brand, a release said. The policy contains all the features of the StormPeace residential policy, but with business interruption coverage with or without physical damage.
ARC first launched its StormPeace brand in June, with the intent of serving the Florida market.
According to a release, StormPeace commercial insurance pays the policyholder an amount based on two factors: the strength of the named hurricane and the storm distance from the insured’s address. The payments are made within 24 to 72 hours and can be applied to virtually any hurricane-related expense, such as replacement for lost income, power restoration, data recovery, transportation costs, and payment for employees and contractors.
Coverage up to $60,000 or the hurricane deductible, whichever is lower, is available. Premiums are based on the coverage and insured’s address, ARC stated.
“With our new commercial product, businesses are protected from loss of income after a hurricane even if their building isn’t damaged,” said ARC CEO Alok Jha.
Jha explained that ARC’s new product was created to address a major client concern.
“Business owners told us one of their biggest concerns is loss of revenue so we added business interruption that automatically kicks in whether or not there’s physical damage,” he said.
Citing data from the Institute for Business and Home Safety, Jha mentioned that an estimated 25% of businesses do not reopen after a major disaster.
“StormPeace should be part of every disaster plan because it pays instantly with a simple claims process, which helps a business get back on its feet faster,” the CEO remarked.
