It’s a fact: Nearly 40 percent of small businesses never reopen their doors after a disaster like a flood.
When it comes to floods, many people don’t realize their business insurance policy doesn’t cover water-related damage. Others don’t think they are at risk of flooding, or doubt that the cost of flood-related damage would be enough to cripple them.
Unfortunately, many businesses found out the hard way this summer that flooding is a real threat. It’s an expensive lesson to learn. The average cost of a commercial flood claim? More than $75,000!
While flood insurance does not cover any financial losses caused by the interruption of business, or any lost use of your building after flooding, it does cover a company’s building and contents. Coverage is available for all businesses, whether they lease space or own their own building. That means a company that is leasing a building still can buy coverage to protect its electronics, furniture and other items.
So should you purchase flood insurance? That depends on your tolerance for risk and the potential for flooding. To help you decide, check out these online tools at the National Flood Insurance Program website here.this page