WEATHER AND NATURAL CATASTROPHES

Flood Resource Center

If your organization is affected by a flood, we can help you manage business interruptions, prepare insurance claims, and support employees.

Whether you are located directly beside a river, lake, or ocean, or even completely landlocked, flooding poses a major threat to both people and property.

Flooding can result from a wide variety of causes, including prolonged periods of rainfall, rapid snowmelt, coastal storm surge, water main breaks, dam failures, overwhelmed storm sewers, and more. The damage caused by floods is immediate. Over the long term, floods can also cause widespread business interruption and food and product shortages.

Understanding what is and is not included in your coverage and implementing a comprehensive insurance policy and risk management plan are critical to minimizing your losses and protecting what matters most.

Flooding can come from any source of prolonged exposure to water. Overland flooding, heavy rain events, snowmelt, storm surge, hurricanes, tsunamis, storm drain backup, and sewer backup are just some of the events that can lead to flooding.

You should prepare beforehand through a combination of assessing flood risk and potential damage, preparing a claims process plan, ensuring coverage, establishing both safety and response procedures, and modifying buildings to be more resilient if necessary.

Resource: Download our flood preparedness checklist

A quick and thorough response plan is key to protecting people and property. When flooding is imminent, your organization’s preparation, response, and recovery plans should include incident command system protocols, employee safety and humanitarian assistance plans, business continuity and supply chain contingency plans, and protocols for managing the claims process.

Resource: Download our preparing for an imminent flood checklist

After a flood event, businesses may be eager to get back to work. However, companies must approach return to work with safety procedures in place and with a mind towards reporting their claims.

As part of recovery efforts, your business should be prepared to file a claim. You should have a plan in place, with key stakeholders aware of their responsibilities.

Resource: Download our checklist on how to get back to work safely and manage claims after a flood

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FAQs

Assessing your risk for flood damage is the easiest way to keep the safety of your business at top of mind. Ask yourself the following questions to determine your risk for flood damage:

Is my business located in or near a known flood zone or an area that has experienced flooding?
Where is my equipment and inventory located, and will it be impacted if a flood occurs?
Will my employees be able to reach the office or warehouse in the event of hazardous weather?

Having an emergency response plan in the event of a flood event is critical to reducing your risk of damage. Together with a flood insurance policy, it can provide peace of mind and enhance your resilience when flooding occurs.

Flood insurance plans are intended to be a supplementary policy to cover property, including homes and buildings, in the event of a flood. In many cases, standard property insurance will not protect against flood damage. Plans may vary somewhat in their coverage, based on the issuing broker and the region of the world in which the insured’s property is located. However, most typically cover flooding damages to:

The foundation of the home or commercial building
Electrical and plumbing systems
Appliances
Flooring
Personal property, such as furniture, clothing, electronics, and valuables

Depending on your needs and availability, you might also consider additional coverage for business interruption and extra expense.

Flood Resource Center

Related insights

Risk in Context Podcast: Developing a pathway to managing natural catastrophe risks

2023 State of flood report: The way to flood resilience

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