Do Standard Commercial Insurance Policies Protect Against Flood Damages?

How can I insure my business against floods?

If your business is located in an area with high flood risk, then securing the right coverage for flood damages is a matter of grave importance. While many business owners assume that flood damages are covered under their commercial property insurance, this isn’t actually the case. Standard commercial property policies explicitly exclude flooding from coverage, leaving many business owners with a dangerous gap in their coverage. Fortunately, you can address this gap by securing a specialty commercial flood insurance policy. Here’s what you need to know about this form of business insurance.

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 storm drainage systems, broken dams, broken levees, and so on.

Does commercial flood have coverage exceptions?

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 and 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 commercial flood insurance. Do you have additional questions regarding your business’s insurance coverage? If so, contact the team at Stromsoe Insurance Agency in Murrieta, California. Our dedicated professionals are eager to assist you with all your commercial coverage needs today.

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