Why Not Getting Flood Insurance is a Costly Mistake for Your Business

Why Business Flood Insurance is an Absolute Must

Think your business doesn’t need flood insurance? Think again! Read on to learn why business flood insurance is an absolute must.

Did you know that in 2017 floods caused 60.7 billion dollars in damages in the United States?

Maybe your business hasn’t suffered any flood damages in the past. But, is it safe?

It’s always better to be safe than sorry. You might think your business insurance policy is enough. But, does it cover flooding?

If it doesn’t, you should consider adding business flood insurance coverage to your policy. Not sure why? We’ll tell you why this coverage is a must for your business.

What Is Flood Insurance?

You might’ve heard about this type of insurance coverage before if you live in a flood zone. But, what is flood insurance? How can it protect your business?

Flood insurance is a coverage that protects properties from loses due to water damage. This type of insurance will protect your location, equipment, inventory, among other items. You should consider getting this coverage for your business even if you aren’t located in a flood zone.

You can obtain flood insurance coverage for your business from an insurance carrier or agent under the National Flood Insurance Program (NFIP). The fees may vary depending on your zoning, type of business, inventory, among other factors.

An insurance agent may provide more information regarding what factors might influence your coverage and policy cost. Also, they may advise you on what coverage your business needs.

What Does a Business Flood Insurance Policy Cover?

The NFIP program offers 2 types of flood insurance coverage. Through FEMA’s program, you may obtain personal and business property coverage for up to 500,000 dollars. In commercial flood insurance, personal property is all the inventory, equipment and other types of business property.

Under the policy, the business property includes the building, water heaters, electrical and plumbing systems, among other assets. You can identify this type of property by narrowing down the property that comes with the building.

It’s important to keep in mind that this insurance doesn’t cover certain damages. An example is damages caused by mold, mildew or moisture that could’ve been prevented.

Also, this coverage won’t cover any financial losses due to loss of insured property or business interruption. Before buying your policy, it’s important to research the insurance coverage you are considering. Your insurance agent should explain the extent of your coverage.

Bottom Line

Business flood insurance is a must in any business. Most business insurance policies don’t include this type of coverage. This insurance covers more than floods cause by lakes or other bodies of water.

It may cover damage from flooding caused by runoff surface waters too. Building a business takes time and hard work. A flood can cause you to lose all your efforts in a glimpse of an eye.

It’s recommended you consult an insurance agent or carrier to learn what is the best coverage for your business. Before contacting them, you should have an idea of the value of your business and property. The agent will need that information to provide the best coverage options and quotes.

Want to learn more helpful tips on how to protect your business? Check out our blog for more interesting articles.