It's an understandable sentiment. Your business is struggling with profitability. You're seeing black turn to red in your ledger. You're noticing few customers while your costs are going up.
You might think that it's time to let go of flood insurance to help boost your bottom line.
But that's not the direction you should take.
The Importance of Flood Insurance
You might think that you're free from a flood risk because your business is located on so-called "high ground." In fact, floods can occur well above flood plains.
In other words, your business is likely at risk for a flood. That's why it's important that you maintain flood insurance, even during the lean times. The last thing your business needs is an enormous dollar value in damages caused by water damage.
What Flood Insurance Covers
However, that's not where the coverage for commercial flood insurance stops. Other assets, such as furniture, fixtures, and equipment, are also covered. That's important because that means that your flood insurance will provide you with the assets you need to get your business back up and operating quickly.
Beyond that, flood insurance provides you with additional coverage. Many of the costs associated with preparing your business for a flood are covered. These include sand bags, trench work, and the construction of temporary flood control measures.
Additionally, you can expect your commercial flood insurance policy to cover the costs of cleaning up your business site after a flood. That's just another way that flood insurance helps you get up and running quickly in the aftermath of a flood.
Remember, your standard commercial insurance policy probably does not cover your business in the event of water damage caused by a flood. This means that you'll need flood insurance or risk paying for the expenses associated with a flood out of your own pocket.
Simply put, the risk isn't worth it. Be sure that your business has coverage for flooding.