Understanding Property Insurance in St. Maarten

Storm Damage

Hurricanes and floods can damage business assets in St. Maarten, and the Atlantic hurricane season runs from 1 June to 30 November. Hurricane Irma in September 2017 caused widespread damage on the island, which is why many businesses review their sums insured, business interruption cover and deductibles. Property policies differ in how they treat wind, flood and water damage, and deductibles often apply. Buildings and stock close to the water, for example in Simpson Bay, Maho, Oyster Pond or along Front Street in Philipsburg, may face different exposures from those further inland. An advisor can explain what a policy says about storm events.

Theft

Property policies may respond to loss from events such as break-ins or robbery, depending on the policy wording. Retail and duty-free shops, restaurants, beach bars and villas left empty between guests may each have different theft exposures. Cover for events such as shoplifting or employee theft varies by insurer and may be limited or excluded.

Risk Mitigation

Risk mitigation means putting controls and safeguards in place to reduce the likelihood or impact of a risk. Insurance is one of the tools a business may use.

Risk Monitoring

Risk monitoring means reviewing risks from time to time as circumstances change, so that controls and insurance can be reviewed when needed.

Risk Management

Why Risk Management Matters for Insurance

Risk management is a process of identifying threats and considering ways to respond, such as insurance, safety measures, training and monitoring. Insurers may consider a property’s risk features, such as security, construction and maintenance, when setting terms. How these factors affect a policy or premium depends on the insurer.

Insurance Risk Assessment

An insurance risk assessment looks at the threats a business faces, considers their likelihood and potential impact, and orders them by severity. This can provide a basis for deciding which risks to address and how. Areas that are often considered include operations, finance, compliance and external risks, such as weather.

An advisor can discuss your property and operations with you and talk through the cover you might consider. You can contact an advisor if you would like to review your risks and how your insurance relates to them.

Insurance Risk Planning

Risk management is not a one-off task, because a business and its circumstances change. When planning, a business might consider how much risk it is willing to carry itself, which exposures are most significant, and how insurance, safety procedures, security controls and monitoring could work together.

An advisor can explain how insurance fits alongside other risk measures and what alternatives a policy might offer, for example different deductibles or limits.

Insurance Risk Management

Managing Insurance Risks

Managing business risk can involve reviewing exposures and vulnerabilities, and considering safeguards. Examples include insurance policies, updated employee procedures, backup arrangements for operations and security systems. The right mix depends on the business.

Risks change over time. It may be worth reviewing your risks and your insurance when your business or circumstances change. An advisor can discuss these topics with you and explain the policy wording related to your property.

Property Insurance for Businesses in Sint Maarten and Saint Martin

Business property in Sint Maarten (the Dutch side) and Saint-Martin (the French side) covers a wide range of assets: hotel and timeshare buildings, villas, shops in Philipsburg and Cole Bay, restaurants and beach bars, warehouses used by importers and distributors, and marina facilities around Simpson Bay Lagoon. A review may include whether the sum insured reflects current rebuilding or replacement costs, how wind and flood are treated, whether business interruption is included and which deductible applies. The currency of the sum insured and the premium is also worth checking, as US dollars are widely used in business locally but a policy may be written in another currency. Landlords, lenders or clients may ask for evidence of cover, and an advisor can explain what applies locally.

For more on how policies describe storm damage and business interruption after a hurricane, see hurricane insurance in St. Maarten.

Contact Us

Reviewing risk starts with understanding your exposures. You can contact an advisor to talk through the threats your business faces, how they could affect your property, and what insurance and other safeguards you might consider.

To discuss this, you can request a call back or call +1 721 542 5078. The offices are in Philipsburg and Cole Bay.