Flooding is every bit as damaging to property owners as hurricanes, tornadoes or any other natural disaster. If you're a small-business owner and live in any area near a river, ocean or bay, or where major storms are prevalent, this is arguably the disaster for which you'll need the most preparation. Beyond the severe havoc it can wreak on the physical structure of your business, a flood can also ruin inventory. When a flood hits, you may end up losing revenue, whether you're closed for repairs, restocking or both.
The impact of a flood doesn't have to mean the end for your business ─ but you've got to fully understand what's at stake and be well-prepared in advance.
How is flooding most likely to damage my business?
According to the Insurance Institute for Business and Home Safety (IBHS), a nonprofit insurance industry research organization, the principal types of flood risk are:
The depth of floodwater is particularly important to note in terms of structural integrity. The IBHS states that any floodwaters that go beyond three feet can crack masonry and other foundational materials, potentially bringing an entire structure down.
How should I protect myself?
As pointed out by the Insurance Information Institute (I.I.I.), the decision of whether to buy flood insurance is made for you if your business is in an area of high flood risk and under a mortgage from a federally insured or regulated lending institution. Typically, in such cases, flood insurance is required by the lender.
But even if it's not mandatory, flood insurance can be a wise choice. According to the I.I.I., few commercial property insurance packages cover flood or water damage. So if your business is even somewhat close to a body of water or the local climate is prone to precipitation, a flood policy can be a smart purchase.
The Federal Emergency Management Agency, in collaboration with local lenders and insurers, sponsors flood coverage through its National Flood Insurance Program. Business owners interested in this initiative should request a Flood Hazard Determination Review to determine eligibility. Visit selectiveflood.com for additional information.
The impact of a flood doesn't have to mean the end for your business ─ but you've got to fully understand what's at stake and be well-prepared in advance.
How is flooding most likely to damage my business?
According to the Insurance Institute for Business and Home Safety (IBHS), a nonprofit insurance industry research organization, the principal types of flood risk are:
- Levee or dam breaches, which release held-back river or ocean water.
- Flash flooding resulting from extensive rainfall all at once, severe thunderstorms that linger or tropical storms moving inland.
- Rising water from melting snow or large drifts of ice.
- Fast-moving water from overflowing rivers, in which case the water's lateral force is the most destructive aspect.
The depth of floodwater is particularly important to note in terms of structural integrity. The IBHS states that any floodwaters that go beyond three feet can crack masonry and other foundational materials, potentially bringing an entire structure down.
How should I protect myself?
As pointed out by the Insurance Information Institute (I.I.I.), the decision of whether to buy flood insurance is made for you if your business is in an area of high flood risk and under a mortgage from a federally insured or regulated lending institution. Typically, in such cases, flood insurance is required by the lender.
But even if it's not mandatory, flood insurance can be a wise choice. According to the I.I.I., few commercial property insurance packages cover flood or water damage. So if your business is even somewhat close to a body of water or the local climate is prone to precipitation, a flood policy can be a smart purchase.
The Federal Emergency Management Agency, in collaboration with local lenders and insurers, sponsors flood coverage through its National Flood Insurance Program. Business owners interested in this initiative should request a Flood Hazard Determination Review to determine eligibility. Visit selectiveflood.com for additional information.
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