Though it might seem like a rare occurrence, floods can and will happen, and when they do come, the consequences can be devastating. These natural disasters have caused billions of dollars worth of damage over the decades, with businesses suffering an especially tough blow as a result. Those who set up shop in low-risk flood zone areas aren’t completely immune to flood damage, either. Since most standard business insurance policies don’t cover flood damage, speaking with an insurance company on acquiring a separate policy to protect your business is essential.
Why Flood Insurance is Integral to Your Business
This type of insurance covers any building and its contents that are damaged by flooding, including floods caused by prolonged and heavy rainfall, overflowing rivers, storm surges, blocked drainage systems, and others. To be considered a flood and qualify for insurance claims, water must affect at least two properties or span across two acres.
Floods that occur inside the property resulting from melting snow or rain leakages and overflows are not covered by flood insurance. The same goes for burst pipes. Such examples are covered by commercial property insurance.
Benefits of Flood Insurance
Businesses may want to consider investing in flood insurance given the benefits it can provide. These include the following:
Protection for Your Property
Commercial properties can sustain some damages during floods, costs which a flood insurance policy can cover. Everything from electrical systems to appliances and plumbing will be covered. There are other structural items such as windows, staircases, foundation walls, and pumps that will also be counted for insurance.
Though flood may cause damage outside the premises, flood insurance doesn’t usually cover sheds or other buildings on the same property, though detached garages are acceptable. Vehicles used for business or financial loss from business interruption due to the flood are also not included in flood insurance. If your business property is located somewhere with fast-melting snow or heavy rainfall, then this insurance policy may help your business when it comes time for costly repairs.
Protection for Your Product
When weighing flood insurance costs, choose the policy that will also cover protection for your product. Businesses need a continuous supply of inventory in stock to meet the demand of their customers. Floods could damage these products and render them unsellable. Purchasing replacement products is a major expense that will set the business back, so commercial flood insurance helps business owners by eliminating such a cost. This is separate from the contents of the building itself, which is an additional $500,000 worth of coverage.
Provides Peace of Mind
As floods threaten to destroy commercial properties and livelihoods, many business owners end up worrying that unpredictable storms will destroy all that they’ve worked so hard to establish. No matter the source of the flood, this insurance policy ensures the provision of financial protection against such incidents.
Not only does flood insurance offer you protection in terms of physical assets, but it also fortifites an entrepreneur’s mental state. Worrying about how you’ll fare in the next storm all year round is a stressful thing to carry in the back of your mind. By investing in flood insurance, you can concentrate on making your business grow without the extra worries of what to do after flooding damages.
Conclusion
The reality is that no business is really safe from flooding incidents, even those who build their places in low-risk areas. Weather is also much more unpredictable these days. The only sure way to protect your establishment is by securing the right kind of insurance. Rebuilding a business after it has sustained damage from heavy flooding is difficult and expensive. The right insurance policy will make that job so much easier.
At Quesurance, we believe in serving our customers the way we would protect our own family. We help businesses reduce risks and individual consumers save money to protect their financial futures. Get in touch with us today for a flood insurance quote based on your needs!
