The Impact Of Flood Damage On Your Business

The Impact Of Flood Damage On Your Business

Flood is one of the most common hazards in the United States. FEMA says it is also the costliest of them all. High-risk areas were cited by the National Flood Insurance Program or NFIP to have a 25% chance of flood during the 30-year average mortgage course. Typical insurance policies do not cover losses incurred due to water damage arising from a flood. However, the impact of flood damage on businesses is certainly very costly.

Hurricanes, too much snow and rain, tropical storms, and thunderstorms cannot be avoided, and these are often the causes of floods. However, there are other causes of a flood that you may not be familiar with. Take, for instance, clogged sewage and drainage systems, dam failures, and even urbanization may result in this calamity. These events may happen either slowly or quickly, thus impacting even areas that you deem completely harmless. How does it affect your business, though?

The Most Common Risks to Your Business

Floods can result in health and safety risks for your business. Flood water can definitely bring structural and electrical damage, diseases due to standing water, sanitary hazards, dangerous sharp metals and glasses, contaminated drinking water, and road and bridge destruction. It damages crops, causes landslides, and even cuts off communications, all of which may hamper your business engagements.

Emotional Impact

There is much challenge that comes with floods, and victims who are not resilient enough will find it more difficult living their days. They may suffer from fear, frustration, anger, grief, and at the worst, anxiety and depression. This can definitely impact your employees’ productivity and their relationships. Imagine the loss of appetite and trouble sleeping, and other issues.


Many flood occurrences have proven to be deadly, leading to the death of many. Lives lost are not limited to humans, they may even extend to wildlife, livestock, and pets. This will certainly be devastating to any business that operates in these industries.

Property Loss

Statistics show that about ninety percent of natural disaster damages are the results of water damage arising from floods. No one and nothing is immune from this damage, whether homes, public buildings, equipment, and retail businesses. The water may just be a few inches deep, but the entire damage can be costlier than expected.

Financial Impact

This is one of the most considerable impacts of floods on businesses. Consider the fact that not all insurance companies cover water damages arising from flooding, and you will see how financially drained you will get thereafter. It will cost you a lot of money to have repairs and replacements done. It is best to have the proper flood insurance coverage for your business, or else it will take years to rebuild what you have invested in.

Never take your chances with a flood. If you think you can claim damages from your insurance company, but you are in doubt about the whole thing, it pays to seek the help of public adjusters who can perform preliminary inspections for you just before a catastrophe happens.


    Notes (optional): "Please feel free to address anything else (your title, number of buildings, number of stories, number of units, etc.)"