Does My Business Really Need Flood Insurance?

Does My Business Really Need Flood Insurance?

When it comes to your business, you want to ensure that it is protected from any and all dangers–but what about floods and flood insurance? 

Natural disasters can be devastating to all commercial businesses. There are some damages that are covered by the typical business owners insurance, like lightning or wind storms. Floods, however, are one of the few natural disasters through which your commercial insurance policy holds no validity. For coverage against flood damage, you absolutely need flood insurance. If you are considering flood insurance, here are few common questions you should consider and the relating answers to go with those questions.

Does commercial property insurance cover flood damage? 

No! A common misconception is that commercial business insurance covers flood damage. It does not. The only way you can protect your business from the dangers of flood damage, you must purchase flood insurance.

What does flood insurance cover? 

Damage inflicted to your building and the equipment and assets inside of your building are covered by flood insurance. This includes losses resulting from heavy/prolonged rain, storm surge, snowmelt, overflowing rivers/streams, broken dams/levees, blocked sewage/storm drainage systems. As a rule thumb, water that falls from the sky is covered by your commercial policy; water from below is covered by flood insurance.

What doesn’t flood insurance cover?

Property that lies outside of your building, like fences, signs, landscaping is not covered. Flood insurance does not extend to your business vehicles if they, too, fall victim to the flood damage, but your commercial auto insurance may cover that.

A business insurance policy can only provide coverage for a finite of events. If you want to be covered from flood damage, you require flood insurance. For policies across the globe, contact the independent insurance professionals at Lloyd S. Berkett Insurance Agency in Los Angeles.

11150 W. Olympic Blvd.
Suite 1100
Los Angeles, CA 90064

(310) 857-5757
(800) BERKETT | 237-5388
Fax: (310) 857-5750

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