How Business Owners Can Navigate Flood Risks

Hazardous weather can bring about flood risks, and business owners must know what to do in the event of massive flooding. Flooding is one of the most common and frequently recurring natural hazards in the United States. It extracts a significant financial toll in every region and state, causing millions of dollars in damages yearly. Likewise, an inch of water could result in losses totaling thousands of dollars or more. And yet, many business owners remain unaware of the risks caused by floods.

Businesses can safeguard their assets from flood risk by implementing an excess flood insurance commercial policy. This insurance policy ensures that business owners receive compensation for repairing and replacing damaged property costs incurred.

Many business owners mistakenly believe that standard commercial property insurance provides adequate protection against floods. But these policies typically do not cover damages caused by such events. Therefore, it is advisable to get excess flood insurance separately. 

Insurance agents should understand what flood insurance is and what it covers. Doing so gives them an advantage when dealing with clients, enabling them to provide accurate and helpful information about possible risks and insurance options.

Tips for Dealing with Flood Risk

How can businesses best prepare for flood risks? The Federal Emergency Management Agency (FEMA) outlines three strategies. 

1. Learn about the community’s flood risk

2. Understand a property’s unique flood risk

3. Take action to reduce the risk

Learning about the Community’s Flood Risk

Many tools are available for learning about a particular community’s flood risk. Among these are Flood Insurance Rate Maps and National Risk Index.  

Flood Insurance Rate Maps (FIRMs)

Flood Insurance Rate Maps (FIRMs) can help identify areas at risk of flooding. These maps show areas where floods are likely to occur, which is helpful for owners looking for a new location for their business. 

FIRMs are updated every five years and are accessible from the FEMA flood map service center.  

National Risk Index 

National Risk Index tools help assess natural hazard risks at the community level. These tools can help commercial property owners and developers determine an area’s chance of experiencing natural disasters. 

The National Risk Index is available online. Apart from data on natural hazard risks in different areas, it also provides information on projected losses if a flood occurs. It can help business owners determine the chances of recovering from a natural calamity. 

Understanding Property’s Unique Flood Risk

Understanding the property’s unique flood risk is crucial to mitigate the risk better. Business owners should consider and review the various flood risk variables to know how they affect the property. 

Adopting Measures to Reduce Flood Risk

Business owners can help reduce the damage caused by floods by building their property in low-risk flood zones. These are areas where floods aren’t as likely to occur. 

Formulating an evacuation plan to prepare for an impending flood and securing adequate supplies before the hazard strikes is advisable. Essential supplies include food and potable water for a few days, emergency medical and first-aid equipment, and communications devices. 


Purchasing flood insurance can help mitigate some of the losses and damages caused by a flood. Although it won’t prevent a flood from damaging property and company assets, it will compensate owners for repair and replacement expenses they may incur after such a disaster. 

Remember: floods can happen anytime and anywhere, even if the property in question isn’t in a high-risk zone. Learning more about the historical flood risk in the area and the potential cost will enable business owners to prepare for unforeseen events and take measures to protect their investments.

About Snyder Specialty

Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.