• Call: (888) 472-4262
  • Client Access
Graham Company
  • Call: (888) 472-4262
  • Who we work with
    Construction Manufacturing & Distribution Health & Human Services Real Estate Financial & Professional Services Other Industries
  • What we do
    Property & Casualty Employee Benefits Surety Services Personal Lines Cyber Solutions Our Specialties
  • Who we are
    Our History Our People Our ESOP Our Community
  • Our Difference
    The Graham Way Innovation Technical Development Safety Services Claims Management
  • Careers
    Our Job Board
  • Knowledge Center
Flood Insurance for Business: Homeowners aren’t the only ones who need it

November 09, 2015

When you hear the term “flood insurance” you might think it’s a precaution that homeowners need to take so they can cover any damages caused by a storm that floods their basement. While flood insurance is important for those that live in areas prone to flooding, flood insurance for business is also a worthwhile investment.

According to the Federal Emergency Management Agency (FEMA), 25% of businesses that close after an event like a flood never reopen; and, on average, FEMA data shows that flood claims amount to nearly $89,000. Right now you might be saying to yourself: Doesn’t my commercial property insurance include flood coverage? No. In most cases, damage from flooding is limited or excluded for flood prone areas under a standard commercial property insurance policy.

What does flood insurance cover?

Flood insurance provides coverage for damage to your building and its contents caused by a flood. These losses can be caused by overflowing rivers or streams, prolonged rain, a storm surge, or a variety of similar cases. To be considered a flood, water must cover at least two acres or affect two properties. If it’s simply water damage caused by rain – for instance, a leaky roof – this will, more than likely, be covered by a standard commercial property insurance, not flood insurance.  When commercial insurance carriers limit or exclude flood, coverage is available from the National Flood Insurance Program (NFIP).

What isn’t covered by flood insurance?

What NFIP flood insurance doesn’t cover is just as important as what it does. Generally speaking, property outside of your building isn’t covered by flood insurance (e.g., landscaping and septic systems). Business vehicles are also not included in flood insurance coverage. Lastly, any financial losses caused by business interruption or loss of use of insured property aren’t covered by flood insurance. However, there are other kinds of commercial policies that extend or supplement NFIP coverage, so make sure to speak with your insurance broker to determine what you need as part of your risk management and insurance plan.

Do I need flood insurance?

Each business has its own unique risk factors that need to be accounted for as part of its insurance and risk management plan. They can be related to the industry in which you operate, where your business is located or a myriad of other variables. If you’re uncertain as to whether or not you need flood insurance, speak with your insurance broker. He or she can analyze your situation, identify any coverage gaps and help you determine if flood insurance is something your business should have.

Kevin D. Smith, CPCU, ARM
CPCU, ARM, Managing Director
ksmith@grahamco.com
The Graham Building
Philadelphia, PA, 19102
215-701-5323
SAVE AS PDF >
Kevin D. Smith,

CPCU, ARM, Managing Director

ksmith@grahamco.com

202.539.2872

Share:
Tags: Insurance The Graham Company Kevin Smith Flood Insurance National Flood Insurance Program NFIP
RECENT POSTS
New Year, New Rules: Healthcare Transparency Rules and Plan Sponsor Obligations
New Year, New Rules: Healthcare Transparency Rules and Plan Sponsor Obligations

Apr 05, 2022

5 HR Technology Trends to Monitor in 2022
5 HR Technology Trends to Monitor in 2022

Apr 05, 2022

5 Mental Health Employee Benefits Trends for 2022
5 Mental Health Employee Benefits Trends for 2022

Apr 05, 2022

How to Combat "The Great Resignation" by Building Customized Benefits Packages to Attract & Retain Top Talent
How to Combat "The Great Resignation" by Building Customized Benefits Packages to Attract & Retain Top Talent

Apr 04, 2022

RELATED POSTS
NYCIRB Announces Withdrawal from the NCCI Experience Rating Plan
NYCIRB Announces Withdrawal from the NCCI Experience Rating Plan

Mar 17, 2022

State of the 2022 Insurance Market
State of the 2022 Insurance Market

Mar 09, 2022

FEMA Risk Rating 2.0
FEMA Risk Rating 2.0

May 17, 2021

Fiduciaries of All Retirement Plans - Beware of Excess Fee Claims
Fiduciaries of All Retirement Plans - Beware of Excess Fee Claims

May 10, 2021

Home
Contact
Events
Company News
News
Branding
Privacy Policy
Graham Company

Follow us

Graham Company
Home
Contact
Events
News
Branding
Privacy Policy

Follow us

Sign up for our Newsletter!

Thank you for your submission.

Sorry! something went wrong. Please try again.

© Copyright . The Graham Company. All Rights Reserved. Site by Brand X Republic