It’s also important to start mitigating the damage as soon as you can. “This is essential not only for insurance purposes, but to prevent further damage like mold growth and structural damage which can cost your business tens of thousands of dollars,” Dow says.
When it comes to your small business insurance, the details of your coverage matter. Most Property policies exclude damage from flooding, groundwater, and backed-up sewer lines, so your insurer will likely look at the source of the water damage when you make a claim and decide whether you’re covered.
The bottom line? Plan smart. If you’re in a known flood zone, ask about flood insurance as an endorsement. If you’re located in an older city, a severe storm has the potential to overflow sewage pipes and make a real mess. Be aware of local risks and plan smart.