Why Flood Insurance is Important for Your Business


Your business can face many unexpected challenges, including natural disasters like floods. While property insurance covers many types of damage to your business structures and property, most policies do not protect against flooding. You need comprehensive flood insurance to safeguard your assets and help you return to business immediately.

Coverage From Flood Insurance

Flood insurance coverage is a valuable investment in the longevity of your business. It defends you against financial losses due to multiple conditions, including:

  • Heavy and prolonged rain
  • Snow melts
  • Storm surge
  • Damaged levees and dams
  • River and stream overflows
  • Damaged or blocked storm drainage processes

The federal government sells flood insurance through the National Flood Insurance Program, operated by the Federal Emergency Management Agency, or FEMA. However, you are not able to get this coverage directly from the federal government. You need to purchase it through an insurance agent who can work with you to customize your coverage for your needs and budget.

Purchasing flood insurance coverage is mandatory if your business property is in a high-risk zone for floods and you carry a mortgage from a federally insured or regulated lender.

Why Business Flood Insurance Matters

As you build up your business and gain more property, potential risks also increase; the correct type of flood insurance policy safeguards your assets. FEMA has calculated that approximately one inch of water could cost as much as $25,000 worth of damage. The agency has outlined six critical reasons to buy a flood insurance policy for your company.

1. Lack of General Coverage

Protection against floods is typically not included in policies for commercial property.

2. Rental Property Protection

Most tenant policies do not cover damage caused by floods if you rent properties for your business. Furthermore, the policies of property owners will probably not cover flooding. You need to make sure you have protection for all of your business property, including:

  • Computers
  • Printers
  • Telephones
  • Inventory
  • Equipment and tools

This coverage protects machinery and stock.

3. Expensive Losses

If your business floods and you do not have a flood insurance policy, you will suddenly understand the importance of business flood insurance. If your business does not have flood coverage, you are responsible for all structural repairs and replacing everything, which could put you out of business.

4. Ineligibility for Federal Help

Businesses are not eligible to receive FEMA disaster grants.

5. Potential Danger

Risk assessments do not necessarily include locations that may seem safe from floods. Many businesses outside high-risk flood zones also suffer losses from flooding.

6. Practicality

Flood coverage can help you salvage your business after a disaster, and it generally only has a 30-day waiting period.

Flood Insurance Safeguards Your Company’s Future

Purchasing flood coverage for your company lets you focus on your customers, vendors, and partners without worrying about catastrophic events. Customizable to fit your company’s situation and budget, this specialized coverage can help you make structural repairs and purchase new furniture, tools, and equipment. This coverage is about looking to the future and protecting your company for the road ahead. 

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.