flooded warehouse

According to FEMA, floods are the most common and costliest disasters in the U.S., negatively impacting millions of individuals and businesses annually. New Jersey, with almost 2,000 miles of coastline, is more vulnerable than residents realize. Because just a few inches of water can result in thousands of dollars worth of damage, nearly 40 percent of small businesses are unable to survive a flood. Yet the majority are not adequately protected by Flood Insurance. 

As our climate changes, powerful storms intensify and increase in number, so we have more reason to be concerned about flooding. According to the New York Times, nearly twice as many properties are susceptible to flood damage than previously believed. If you are wondering whether you should get Flood Insurance for your business, you have only to read this article to convince yourself of the necessity of taking action promptly. 

Once you have read this content, call Blue Lion Insurance Advisors, LLC at (732) 649-1600 or contact us online. We are able to offer you Flood Insurance from the National Flood Insurance Program (NFIP) and also through private insurance companies. Now, with the hurricane season already upon us and the possibility of torrential water accumulation ever-present, it’s time for you to considering securing your business with Flood Insurance.

Why Having Commercial Flood Insurance Is Essential

The following facts demonstrate why your business should carry Flood Insurance: 

  • If your business is located in a high-risk flood area and you have a federally regulated or insured mortgage, Flood Insurance is mandatory.
  • Wherever your business is located in New Jersey, your business is in danger of flooding, whether or not it is in a flood zone. 
  • Commercial General Liability Insurance does not cover flood damage.
  • If part of your business or stored inventory is at ground or basement level, your property is at increased risk.
  • There are many more health and safety risks associated with flooding than you may realize, including:
    • Damage to equipment, furnishings, inventory
    • Structural and electrical damage
    • Sanitary hazards from standing water
    • Contaminated drinking water
    • Damaged sewage system
    • Destruction of livestock
    • Interruption of communication
    • Damage to access roads or bridges 

Tragically, serious injuries and/or fatalities may occur as a result of flooding at your business site. Even long afterward, you may not be able to open your doors or restart your enterprise, resulting in loss of income as well as expensive repairs and rebuilding. This is why it’s so crucial to be proactive by contacting Blue Lion Insurance Advisors, LLC now before a possible disaster occurs.

What Commercial Flood Insurance Covers

Flood Insurance policies typically cover structural damage as well as damaged or destroyed furnishings, equipment, and inventory if you own the building, but only the latter if you have Renter’s Flood Insurance. Your premiums, as you would expect, vary according to the size, age, and condition of your building and belongings. Your policy will cover losses resulting from:

  • Overflowing rivers or streams
  • Heavy or prolonged rain
  • Storm surge
  • Snowmelt
  • Blocked storm drainage systems
  • Broken dams or levees

In most cases, if water damage is weather-related, it is covered by Flood Insurance. Mold and mildew conditions are assessed individually since business owners are responsible for taking reasonable actions to avoid or eliminate these problems.

What Commercial Flood Insurance Does Not Cover

Though Business Flood Insurance covers most indoor loss, except for valuables like antiques or artwork for which you may require additional coverage. Our knowledgeable insurance advisors will be able to determine which extra coverage you need, if any.

Property outside your building, like landscaping, is not usually covered, nor are business vehicles. You do, however, have the option of making your Business Vehicle Insurance more inclusive so that it covers flood damage. Financial losses caused by business interruption are not covered, but you can obtain special coverage for loss of use of insured property  

Contact Our Experienced Advisors Now for Effective Business Flood Insurance

You have worked too hard to establish and grow your business to let it be destroyed by flood waters. Call Blue Lion Insurance Advisors, LLC at (732) 649-1600 or contact us online to protect all that it takes to keep your business alive and thriving.