As a business owner, one of your highest priorities is protecting your employees, property, and assets. However, no matter how many precautions you take, some things are out of your control. In the case of a natural disaster such as a hurricane or flood, ensuring that your property and assets are protected is of the utmost importance.
In this blog, we will provide a summary of commercial flood and commercial property coverage so you are prepared to protect your business in the case of an emergency.
Quick Breakdown of Commercial Flood Insurance
What is Commercial Flood Insurance?
Commercial flood insurance is a special form of property insurance that covers the costs of damages to assets or property as a result of water damage directly from flooding. The primary goal of commercial flood insurance for businesses is to protect property, equipment, fixtures, furniture, tools, and more from flood damage.
What Does it Cover?
There are generally two forms of flood insurance coverage available for business owners to consider.
The first is commercial content which provides coverage for your inventory, merchandise, or other assets within your business location up to $500,000. The second type of coverage is commercial building which offers protection for the physical building up to $500,000. Business owners are allowed to purchase both policies, providing a total of $1 million worth of insurance.
What is Not Covered?
Although commercial flood insurance is a great way to safeguard your business from financial loss, there are certain things it doesn’t cover. The following are NOT covered by either commercial or building property flood coverage:
- Water damage caused by moisture, mildew, or mold that could have been prevented.
- Water damage caused by sewer or drain backups unrelated to flooding.
- Loss of currency, precious metals, and valuable papers like stock certificates.
- Property and assets that are located outside of the building (walkways, decks, fences, patios, or trees).
- Financial losses caused by business interruption.
- Self-propelled vehicles such as cars and their parts.
Why Your Business Needs Coverage
Many business owners often overlook the value of commercial flood insurance. Especially those located outside of Special Hazard Flood Areas. Even if your area is not prone to floods, overland flooding can occur anywhere and is not covered by typical property insurance plans.
One recent example where businesses could have prevented financial loss is Hurricane Ian in Florida. Many inland regions such as Orange and Seminole counties weren’t expecting mass flooding, and they were unprepared for the unfortunate flooding that hit the area. In fact, Hurricane Ian caused $40 billion in property damage throughout the state.
Random storm surges can cause flash flooding regardless of where your business is located. In the event of a flash flood, you don’t have time to secure and protect your property. That’s when having commercial flood insurance can save your business.
Are You Ready to Secure Your Business?
In the insurance world, it’s necessary to hope for the best but prepare for the worst. When a natural disaster suddenly strikes, you need to ensure your business is protected. Contact our resourceful team today at RRL Insurance to discover how we can help secure your business and mitigate potential loss.
