What Type of Insurance Protects Your Business From Flood Damage?

Flooding can pose a serious threat to many businesses, including those throughout California’s coastal cities and inland valleys. Addressing these natural disasters through adequate insurance is an essential, but often misunderstood necessity, as many business owners may be surprised to learn that standard commercial property insurance typically does not cover flood damage. As such, companies may need to invest in additional components of their business insurance packages.

Understanding Commercial Flood Insurance

Commercial flood insurance is a specialized type of policy designed to cover losses caused by external water. If heavy rains or overflowing bodies of water have an adverse impact on your property, this type of insurance can help pay for resulting losses and expenses.

What Does Flood Insurance Cover?

Although coverage details may vary, commercial flood insurance policies can typically provide financial assistance for the following:

• Repairing physical damage to your buildings, such as their walls, foundations and electrical systems
• Replacing lost or damaged items inside covered structures, such as your business’s electronics, tools, equipment and furniture
• Cleaning up after a flood, such as by removing contaminated materials or debris left behind by receding floodwaters.

Is Coverage Required?

Although flood insurance is not typically required by law, many businesses may be beholden to other obligations. For example, if you’re located in areas at high risk of flooding and have purchased your company’s building with the help of a federally supported mortgage, you’ll typically have to have coverage. Additionally, some commercial landlords may mandate coverage.

Do I Need Additional Policies?

Although flood insurance can provide versatile coverage against these natural disasters, many businesses may need additional policies to fully protect their interests. For example, motor vehicles are not typically covered by flood insurance, meaning you’ll need a commercial auto policy that includes comprehensive coverage.

How Can I Get the Right Insurance?

Protecting your business from the financial consequences of flood damage starts with the right information and support. The knowledgeable and experienced team at JSW Insurance can help your business understand its coverage needs and compare various options.

Contact us today to learn more or compare personalized flood insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.