Is your business ready for the next 100 year storm? Over the past few years, it seems that we are getting hit with large storms that should only come once a generation. These storms are causing flooding in areas that have not traditionally had water back up. The sewer systems in these areas were not designed or are capable of handling affluent amounts of water in a short time period. This has resulted in commercial buildings and businesses getting flooded in areas where this has never been a problem in the past.
We find that many businesses are under the assumption that flood is covered in a commercial property insurance policy. This has created for much financial loss to companies as a result of these large storms. The standard commercial property policy will cover back up sewers at a minimal amount. These policies will offer a limit of $10,000 to $50,000 depending on the carrier. On average, most insurance carriers offer closer to $20,000. In a large flood, these limits do not even come close to covering the loss. Many policies exclude surface water, which would leave you with no coverage in the event of a flood.
We make all our clients aware of this lack in coverage and provide them the option for flood coverage. It is in every businesses best interest to explore this option and know what your flood liability is. Don’t get caught without coverage when the next storm hits. Educate yourself on your current coverage and have your agent provide options that best suit your business.
