A Quick-Reference Guide to Commercial Floodwater Insurance

11/11/2021 (Permalink)

While purchasing insurance to protect your business from flooding is generally a good idea, you may have a legal obligation to purchase coverage.

A Guide To Commercial Flood Insurance in a Nutshell

Regardless of the nature of your Edmond, OK, business, it must stay dry to be successful. After all, few things can destroy a business faster than rising floodwaters. If you have been thinking about purchasing flood insurance for your company, you prbablyo have a few basic questions about this type of coverage.

Does Your Business Need Commercial Floodwater Insurance?

While purchasing insurance to protect your business from flooding is generally a good idea, you may have a legal obligation to purchase coverage. If both of the following apply to your organization, you may be required to carry a flood policy:

• Your business is in a high-risk flood area
• You have a federally-regulated or insured mortgage
  

How Do You Know If Your Business Needs Flood Protection?

While your business may not have a contractual responsibility to purchase flood insurance, you may decide your company needs it anyway. Typically, businesses located inside floodplains need flood coverage. Both federal and state governmental agencies maintain maps to help business owners decide whether their companies are susceptible to floodwaters.

Does Regular Business Insurance Cover Flood Damage?

Generally, conventional commercial insurance does not provide coverage for flood damage. While your general policy may protect your business from flooding due to broken pipes or other plumbing problems, it likely won’t cover flooding that occurs during a natural disaster, dam break or other outside flooding event. If your business sustains damage during a flood, you will likely need the assistance of a professional restoration service. The best way to pay for restoration is often with comprehensive flood coverage.

No business owner wants to watch floodwaters carry away equipment or inventory. Therefore, for many Edmond, OK, business owners, planning for floodwaters is part of the normal business process. By understanding flood insurance and finding the right policy, you can be certain your organization has the resources it needs to fully recover when waters recede.