Is your business covered by flood insurance?
Many company owners, like homeowners, are unaware that their commercial property insurance does not always cover floods. A flood may completely devastate a firm since it involves not only rebuilding damaged equipment and restoring structures, but also the length of time that the facilities are unavailable.
It is crucial to highlight that in the case of commercial properties, unexpected severe rainfall is not always the greatest flood danger. You must also consider plugged drains, which may convert a routine rain or snow storm into an unexpected devastating disaster. Because your firm is not in a flood zone, it is not immune to floods. Commercial flood insurance can help you keep your business functioning even after a disaster.
Flood insurance coverage may not take effect until after a 30-day waiting period in certain situations, so it's not a good idea to wait until heavy rain is anticipated where your business is located.
As a company owner, you must consider both commercial flood insurance provided by the government National Flood Insurance Program (NFIP) and commercial flood insurance coverage provided by non-NFIP policies. Non-NFIP plans have two major advantages: they may pay out full replacement prices (whereas NFIP payments account for depreciation), and they may provide compensation for loss of business during the rebuilding period (loss of business is not covered by NFIP).
At least 25% of firms that close following natural disasters such as floods never restart. That is not something you want to happen to your company. It is critical to have a policy in place that protects your organisation, as well as its physical goods and assets, from floodwater damage expenses.
Whether your firm is in a flood-prone location or not, commercial flood insurance is worth researching. Contact us to discuss your flood risk, your business's needs, and your coverage alternatives.