Current events have reminded us of the unfortunate dangers that widespread flooding can bring, both for business owners and homeowners. Did you know that almost 40 percent of small to medium sized businesses do not reopen after a flood? This is according to the Federal Emergency Management Agency (FEMA), which reports that even a couple of inches of water can cause expensive damages that close the doors of many businesses forever. The thought of losing your home or business to a devastating flood is certainly a horrifying idea, but many take the “it won’t happen to me” approach to flooding disasters. Even if you do not live in an area prone to flooding, floods can happen in nearly any location, caused by a variety of factors. The Federal Emergency Management Agency warns of these dangers and suggests that flood insurance is indeed the optimal form of protection from the disastrous losses caused by floods.
To protect your small business from the damage brought about by flood water, follow FEMA’s advice and invest in commercial flood protection insurance. Commercial flood protection insurance is one form of business insurance that is bought as either a distinct business insurance policy itself, or as a flood endorsement.
As mentioned earlier, just because your business is not located in a highly flood-prone area, does not mean that you should ignore commercial flood insurance. Flood insurance is important for small businesses that are far away from water sources in the same way that it is important for waterfront locations. Clearly, businesses that are located on a waterfront property should have flood insurance as a higher priority on their unique list of needs; however, a business that is far from a typical flood-prone area should also have commercial flood insurance on their list of needs. Would you believe that nearly one quarter of all flooding in the United States of America takes place in locations with moderate or low risk for flooding? Precipitation in the form of massive rainfall, ice, or snow can cause flooding, in addition to simply clogged storm drains. If you think you are free to forget about flood insurance, you are taking a big risk of failing to protect your business.
Commercial flood insurance will cover you against all kinds of damages that can be caused by heavy floods. If you have machinery, electrical systems, expensive equipment, plumbing, or personal items that are destroyed or damaged by a flood, commercial flood insurance will pay for the damages. One of the aspects of destructive floods that often goes unnoticed is cleanup. The costs of cleaning up and removing the flood water and debris can be exceptionally high, and these are also covered under a commercial flood insurance policy. Actually, the coverage of commercial flood insurance also extends to before a flood happens as well. If your business has expenses related to flood protection, a commercial flood insurance policy will cover those too.
With an understanding of the severity of flood damage, along with the unpredictable nature of disastrous floods, one can clearly see the importance of commercial flood insurance. If you are a small business owner, you already know how important it is to protect your business through different forms of business insurance. Flood insurance is no different. Cross a flood insurance policy off your to-do list today.