Commercial auto insurance helps cover the costs of an auto accident if you or an employee is at fault. This coverage can help pay for damaged property and medical expenses – even in the event of a fatal accident.
Commercial auto insurance can help protect business owners and their companies if, for example:
- An employee hits a pedestrian while driving one of the business vehicles. The pedestrian requires medical treatment that results in large medical bills.
- You swerve off the road while driving to work in a company vehicle and take out a residential mailbox.
- An employee driving to work in a company vehicle hits another car and totals it.
Get a commercial car insurance quote today to learn how you can protect your small business while on the road.
What Does Commercial Flood Insurance Cover?
If your business or property gets damaged from floodwater, commercial flood insurance can help cover your repair costs. This chart shows you what’s included in a flood insurance policy’s building and contents coverage.1
Building Coverage
- Electrical and plumbing systems
- Furnaces and water heaters
- Appliances
- Permanently installed carpeting
- Permanently installed cabinets, paneling and bookcases
- Windows
- Foundation walls, staircases and anchorage systems
- Detached garages
- Fuel tanks, well tanks and pumps
- Solar equipment
Contents Coverage
- Personal property, such as clothing or furniture
- Curtains
- Portable and window air conditioners
- Carpets not included in building coverage, such as carpeting installed over wood floors
- Currency, precious metals and valuable items
What Is Not Covered by Flood Insurance?
Be aware that the cause of a flood plays a role in coverage. The NFIP defines a flood to be an excess of water on land that’s normally dry and either affects:
- At least two acres of land
- Two or more properties
If your business property gets damaged by a sump pump backup that wasn’t caused by flooding, your commercial flood insurance policy won’t cover the claim.
Commercial flood insurance also doesn’t cover every kind of property damage claim. In fact, this insurance policy doesn’t cover business property outside of your building or:2
- Financial losses from business interruption
- Cars used for your business
- Valuable papers
Do I Need Commercial Flood Insurance?
Most commercial property insurance policies don’t cover flood damage. So, you may want to buy commercial flood insurance to help protect your business and personal property. Even if your business isn’t in an area prone to flooding, you’ll want commercial flood insurance if:
- You run your business in an area that has cold, snowy winters and warm springs. Fast-melting snow is one of the top causes for commercial flooding.
- You experience moderate rainfall in the spring. A nearby stream overflows from the rainfall, flowing into your place of business and causes flood damage.
- Your business’ basement floods from construction runoff next to your building and damages equipment and inventory.
Additional Reasons to Consider Flood Insurance
Although you may think you don’t need insurance because your area isn’t at risk of flooding, floods are one of the most common and expensive natural disasters that can affect every region and state. Other reasons you may want to consider commercial flood insurance:
- Over 20% of flood claims come from properties outside high-risk flood zones.3
- Wildfires can change the landscape and ground conditions in your area, so future rainfall can cause flash flooding.
- Storms aren’t the sole cause of flooding. A broken dam or levee or new building development that changes the flow of water in your area are just a few ways that can trigger a flood.
How Does NFIP Flood Insurance Work?
When you buy flood insurance, there’s a 30-day waiting period before your policy goes into effect. So, if a flood damages your business and you’re within the waiting period, you won’t have coverage. That’s why it’s important to purchase flood insurance well before a potential flood heads your way.
If your business sustains flood damage and your waiting period is over, you can file a claim for coverage.
Do Commercial Loans Require Flood Insurance?
If a business is in a high-risk flood zone, a mortgage lender will likely require a business owner to get flood coverage before you can get a commercial loan.
What Is the Maximum Coverage for Flood Insurance?
The maximum coverage for flood insurance is $500,000 for both building and personal property.4 Your policy will state your business’ specific:
- Coverage limits
- Deductibles
- Insurance premiums