What is Commercial Flood Insurance?
Businesses invest a lot in their properties, buildings and other assets, and they need to protect those investments. While commercial property insurance offers protection against many perils, most commercial property policies exclude flood damage. Commercial flood insurance can help protect Massachusetts businesses from covered flood damage.
Commercial flood insurance is a specialized form of flood coverage. These policies are distinguished from other flood policies that offer personal coverage for individuals’ property and other assets.
What Businesses Need Business Flood Insurance Policies?
Many businesses in Massachusetts may want to purchase business flood insurance. Businesses in areas where floods are common may need the coverage to protect their assets, and they might even be legally required to carry coverage. Businesses in areas where floods occur infrequently may find that coverage is highly affordable and is a cost-effective way to mitigate a small, but potentially costly, risk.
Can Businesses Procure Business Flood Insurance Through the NFIP?
The National Flood Insurance Program is available to both individual and businesses in high-risk areas. In order to purchase a business flood insurance through the program, businesses must have facilities in a participating community. Most communities in Massachusetts that have lots of flooding participate, though.
For businesses that can take advantage of the NFIP, this is usually the most affordable way to get protection against flooding. Businesses that can’t get coverage through the NFIP usually have to purchase a non-subsidized policy on the private marketplace if they want protection.