Why You Need Commercial Flood Protection

It often surprises me that virtually everyone has insurance cover for their homes in the event of flooding, but when it comes to businesses many business owners seem to be pretty lax about what insurance cover they purchase for their commercial properties. While most of them do have business insurance, the number of people who just assume flooding is covered by their policy is phenomenal. They seem to be unaware that a separate policy is often required to cover not only equipment lost during a flood, but also the repair work that is required.

If you get a commercial flood protection policy then the coverage will help you to cover the cost of sandbagging the property prior to a flood; replacement or repair of anything damaged by the flood waters; and will cover all or part of your clean up costs after the fact. This has the potential to save your business a substantial sum of money so it is definitely worth looking into flood insurance, especially if you are in an area prone to flooding on a semi-regular basis. It could even be the difference between being able to reopen your business after the disaster. Many small businesses are forced into bankruptcy following a flood, but over half of small businesses who have flood protection cover are able to reopen while the remainder are at least able to recoup their losses and break even.

The cost of this type of insurance cover will vary greatly depending on your location. If you are situated on a flood plain then you will have to pay more than someone in an area where flooding is not likely. The industry you operate within and the credit rating of your business is also going to play a part in how much your policy will cost you. Talking in ball park terms a policy can be anything from $100 to $1000 per month. That may seem like a massive expense, but consider that you are personally liable for replacing anything lost in a flood, this could potentially bankrupt not just the business but also you. Is it worth the risk when you could be covered by insurance? To me the answer is no. I'm all about the risks – but not when it comes to my money! I won't put my ability to feed my family on the line for the sake of trimming a couple of hundred bucks from the budget.