Protecting Businesses with Flood Insurance
For business owners, protecting their property is essential to ensuring their operations run smoothly, even in the face of unexpected disasters. Flooding is one of the most common and costly natural disasters in the United States, and it can severely impact a business's financial health.
Many business owners assume that general commercial insurance policies will cover flooding, but this is often not the case. That's why it's important to have flood insurance tailored to a business.
What Does Business Flood Insurance Cover?
Business flood insurance, available through the National Flood Insurance Program (NFIP), is designed to help cover the cost of flood damage to both the building and its contents. This includes:
- Building Coverage: This protects the physical structure, including the foundation, electrical systems, plumbing, HVAC systems and permanently-installed fixtures, like carpeting or built-in appliances.
- Contents Coverage: This covers the contents inside a business, such as inventory, machinery, furniture and other business-related items. It's important to note that coverage for contents must be purchased separately from building coverage. Both have their own limits and deductibles.
What's Not Covered by Business Flood Insurance?
Flood insurance does not cover everything. For instance, it won't cover losses due to business interruption or loss of use. Certain outdoor property, like landscaping, also may not be covered. Additionally, the policy won't cover flood damage in basements beyond structural elements like walls, floors or electrical systems.
Why Flood Insurance is Essential for Businesses
Floods can happen anywhere, even in areas considered low risk. With the increasing unpredictability of weather patterns, having flood insurance provides business owners with peace of mind. It ensures that when a flood event does occur, your client won't be faced with overwhelming repair and replacement costs that could severely impact operations.
How You Can Help Your Business Clients
By helping them secure flood insurance, your clients can safeguard their business against the potentially devastating financial impact of a flood. Whether it's protecting the building, inventory or essential equipment, flood insurance ensures that a business can recover quickly and efficiently after a disaster. Remind clients not to wait until it's too late—and take proactive steps to protect their businesses.
For more information on what flood insurance covers and how it can benefit their business, direct business owners to the NFIP's Summary of Coverage: Commercial Property.
