24 Jan 2019
Do My Commercial Policies Offer Coverage for Flood Damage?

How to insure your business against flood damages. 

As a business owner, you probably have the right commercial coverage to protect against employee injuries, liability risks, and property damage. If your business is located in an area with high flood risk, you are likely concerned about protecting your commercial property against flood damages. However, if you are relying on standard commercial property insurance to address your flood risks, you are setting yourself up for disaster. Here’s what you need to know about insuring your business against floods.

Commercial Property Insurance Will Not Offer Flood Coverage

While commercial property insurance is designed to offer compensation for any damage to your company’s building and property, coverage for flood damages is generally specifically excluded. Typically, the only way to secure property coverage against flood damage is through a commercial flood insurance policy.

What Does Commercial Flood Insurance Cover?

Commercial flood insurance offers coverage for the damage that your building and its contents sustain during a flooding event. This includes the damages caused by overflowing bodies of water, heavy or prolonged rain, snowmelt, storm surges, blocked storms drainage systems, broken dams, broken levees, and so on.

What Won’t This Insurance Cover?

Just like any insurance policy, commercial flood insurance has its limitations. For starters, this insurance will not offer coverage for the property outside of your business’s building. This includes your company’s landscaping or septic system. The financial losses stemming from business interruptions are also not covered by your flood insurance. Finally, commercial flood insurance will not cover any flood damages to your company’s vehicles, as the comprehensive portion of your commercial auto policy should cover them.

This is what you need to know about insuring your business against flood damages. Do you have additional questions regarding your commercial coverage? If so, contact the experts at Patterson & Associates in Richardson, Texas. Our dedicated team is eager to get you the coverage that you need today.