Why Your Business Needs Commercial Flood Protection
Flood insurance is commonly available to residential households
. However commercial flood protection is now available for companies that are not run out of a private household. It provides protection for businesses that do business in areas that may be prone to floods. Getting insurance can save a company thousands of dollars should anything happen.
Flood Coverage In Addition To Your Business Insurance
Business insurance will cover the replacement of tools and other materials lost in a flood. This will be purchased as a separate policy from your business insurance. This is because most insurance polices will not cover floods. Homeowners insurance does not cover flood damage and neither does business insurance. If you do happen to run your business from home, you may be able to get this coverage as a flood endorsement on your homeowners policy.
What Will It Cover
Your flood coverage will help you pay for sandbagging before a flood, anything that is damaged in a flood and even clean-up costs after the flood hits. This could potentially save your business thousands of dollars in costs related to flooding. In fact, it could allow you to open your doors again after a flood. It is estimated that almost half of small businesses that have this insurance will eventually open for business again. You may even be able to get money for any personal items that you lose in a flood that hits your place of business.
How Much Does It Cost
How much does it cost to get this extra coverage? It all depends on where you are located. Those who are located near a flood plain may have to pay more than a company that is not in a flood prone area. Your industry and credit rating will also impact how much you have to pay. It is always a good idea to budget anywhere from $100-$1,000 per month for any insurance coverage that your company needs.
Getting commercial flood coverage makes it a lot easier to protect your business from disaster. It should be part of any business disaster planning. Companies could be taking a huge risk if they do not have this coverage because many small businesses use personal lines of credit. This means that you are personally responsible for paying for anything you use that was lost in a potential flood. It isn't worth going bankrupt over something that can be covered.