Flooding is Not Covered by Most Commercial Insurance Policies
The above average snowfall in the northeast has been well documented in 2014. The current conditions in that region of the country will likely lead to widespread flooding this spring. Without flood insurance, many businesses may soon find themselves under water. Closer to home, we do not necessarily worry too much about snow melt, but have experienced the unpredictable extreme weather patterns of a Texas spring.
Flood coverage and back-up of sewers and drains is excluded from most standard commercial property insurance policies. Back-up of sewers and drains can be added to the policy by endorsement. Coverage for flood damage to a business can be accessed by an agent through the National Flood Insurance Program (NFIP) and a few private insurers.
A standard commercial flood insurance policy covers direct physical losses caused by flood as well as losses resulting from flood-related erosion caused by heavy or prolonged rain, coastal storm surge, snow melt, blocked storm drainage systems and levee or dam failure. For small businesses, flood coverage can be available by endorsement to a Business Owners Policy (BOP), if the business is located outside of a flood zone.*
The Insurance Information Institute (III) offers four strategies for protecting a business during flood season:
- Find out if your business is located in a flood zone – Agents at Swingle Collins & Associates have access to flood mapping programs that determine the floodplain.
- Consider buying flood insurance – There are a number of different ways to design a flood insurance program and the premiums are calculated based on numerous factors.
- Include comprehensive coverage for your commercial vehicles – Flood damage to commercial vehicles will be covered by the optional comprehensive coverage.
- Do not wait until a flood is imminent to buy flood insurance – There is generally a 30 day waiting period for a flood policy to become effective.* Consult a qualified agent at Swingle Collins & Associates today.
At Swingle Collins & Associates, we have been helping commercial and residential property owners cover their flood exposure for over 30 years. Please call us today and let our team consult flood mapping technology with respects to your home and/or business.
*Some information in this article was provided by III article: With Spring Comes Flood Season – March 3, 2014
Swingle, Collins & Associates specializes in commercial property insurance coverage The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs for commercial property insurance please contact your dedicated risk manager to discuss the benefits and services of insurance coverage.
The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.