Despite having commercial property insurance as a part of your Business Owners Policy or Commercial Package Policy, your business may have a gap in coverage if you haven’t also added flood insurance to your policy. This is especially dangerous with NOAA’s prediction for increased risk of flooding through the end of May.
When the National Oceanic and Atmospheric Administration (NOAA) released its “2019 U.S. Spring Outlook” at the end of March, it warned of “an elevated risk for flooding through May, with the potential for major or moderate flooding in 25 states.” This has prompted many business owners across the country to ask whether they are covered in the event of flood damage – and many are discovering that they are not.
Do I Need Additional Coverage for Flood Protection?
For most business owners, the answer is ‘yes.’ Since most commercial property insurance policies don’t cover damage resulting from a flood, it’s very likely that you have a gap in your coverage – unless you’ve specifically inquired about adding flood insurance to your other policies.
Protect with Commercial Flood Insurance
Many business owners believe that they don’t need flood insurance because their business isn’t located in an area that’s known for flooding, but this is a common (and dangerous) misconception. The FEMA website warns: “People outside of high-risk flood zones file more than 20 percent of all NFIP claims and receive one-third of federal disaster assistance for flooding.”
You should seriously consider adding a commercial flood insurance policy if:
- Your business is located near an area that has snowy winters and warm springs – as fast melting snow is a top cause of flooding (generally speaking) and a major risk factor this year.
- Your location experiences moderate rainfall during the year – as a single clogged storm drain on your street could result in flood damage.
- You maintain a significant inventory or have made substantial investments in equipment and/or machinery.
What Does Commercial Flood Insurance Cover?
Commercial flood insurance is designed to protect the physical structure of your business and its contents from floodwater damage – including floors, walls, ceilings, equipment, fixtures, furniture, inventory, and business property.
Remember: “Almost 40 percent of small businesses never reopen their doors following a disaster because just a few inches of water can cause tens of thousands of dollars in damage (FEMA).”
Together, we can assess your risk exposures and ensure you’re protected from anything Mother Nature can throw at you.
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