Hurricane Matthew — which wreaked havoc in Florida, Georgia and South Carolina and flooded large portions of North Carolina in 2016 — is a grim lesson on why companies need business interruption insurance.

The hurricane damaged or destroyed more than one million structures and cost $10 billion in damage.

Although the theme parks in Central Florida shut down for only a few days, businesses in flood-ravaged North Carolina were much slower to reopen.

Related: Deadly Hurricane Matthew in pictures

By the time meteorologists identify a hurricane nearing the country and give it a name, it's too late. Insurance coverages are already set, and businesses are forced to wait out the storm to see what damage it does.

Recent hurricanes, floods and earthquakes are a good reminder for businesses to review insurance policies to make sure they're covered in the event of a natural disaster.  Here are a few things to consider.

Related: Drought-to-drenched California faces H20 balancing act

In this Oct. 28, 2016 photo, a business in the historic section of St. Augustine, Florida is open after it sustained damage during Hurricane Matthew. Homes and businesses along the city's waterfront were overwhelmed despite a new $6.7 million seawall built completed in 2014. (AP Photo/Jason H. Dearen)

Don't underestimate how long business will be interrupted.

When reviewing business interruption insurance options, it can be tempting to save some money and choose less coverage, especially if a business hasn't lived through a hurricane, earthquake or flood. It's easy to underestimate how much damage can be caused and how long a business will actually be interrupted.

Almost 40 percent of small businesses don't reopen after a disaster because they're not properly covered. In some cases, a business may reopen just a few days later, but it could feel the effects of the event long after it's back up and running. Business owners, review your policy limits now to make sure they're adequate. Make sure your coverage includes extra expense as well. It's best to be as prepared as possible.

Related: Flooding leads list of U.S. climate disasters costing $46 billion in 2016

Flooding surrounds an arcade and miniature golf course Jan. 10, 2017 in Guerneville, California. An onslaught of winter storms caused flooding in Northern California river towns where thousands of people remained under evacuation advisory. (AP Photo/Eric Risberg)

Make sure suppliers are covered.

A business might not be directly affected by a hurricane or earthquake, but its suppliers might be. Business owners, if you can't get raw materials to make your products, or if you can't deliver them, you might need contingent business interruption (CBI) to cover your suppliers. Contingent business interruption will reimburse lost profits as a result of a disruption in your supply chain. Review your policy now to assess what weather events trigger all of your business interruption coverages and the limits provided.

Related: Worldwide natural catastrophe losses at their highest in four years, says Munich Re

Sandbags line the doors of the Alamo truck stop and casino along U.S. Interstate 80 due to flooding on Jan. 8, 2017 in Sparks, Nevada. More than 1,000 homes were evacuated due to overflowing streams and drainage ditches in the area. (AP Photo/Scott Sonner)

Review payroll coverage.

If a business has been impacted by a storm, operations might be stalled for several weeks or months. If a business employs skilled professionals, it likely wants to ensure that they can continue working when the business is back up and running. If a business requires people to work in a specific location or with specific tools, business owners want to ensure talent is paid while the business is being rebuilt.

It's important for a business to determine which classes of employees should be covered during a period of restoration and any exceptions to employees are addressed and defined appropriately covered as “ordinary payroll” under business interruption coverage as well.

Related: Climate extremes and the impact on businesses, jobs and economies

Floodwaters surround downtown Nichols, South Carolina on Oct. 11, 2016. About 150 people were rescued by boats from flooding in the riverside village. (AP Photo/Rainier Ehrhardt)

Create a disaster recovery and communications plan.

In addition to making sure that a business has adequate insurance to cover necessary repairs and rebuilding following a weather event, it's vital to have a disaster plan that covers technical aspects of what's needed to get the business up and running again. Similarly, owners need a communication plan that outlines how to alert employees about the status of the business.

Often, businesses' insurance policies are not top of mind until an actual loss occurs. However, it's important to review policies and plans regularly to make sure they align with current business. For example, if a business is going through major growth, you may want to ensure its business interruption policy adequately covers the loss of expected revenue.

If a business makes organizational changes, they may want to revisit who is and is not covered under payroll insurance. Putting these policies into place now, and learning from the mistakes of others, can help you deal with a disaster if — and when — it strikes.

Related: Forecasting risk before, during and after a hurricane

Regina Burns-Stover is a veteran insurance agent and broker. She is the leader of the property and casualty account management team at Corporate Synergies.

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