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  • Writer's pictureFloodPrice

Commercial Flood Insurance: Understanding the Risks and Options

Updated: Jun 21, 2023

The risk of flooding has the potential to shut down a business permanently. Businesses that are not prepared to cover the costs of flood damage may face tens of thousands of dollars in repair costs.

Many business owners think that the peril of flood is covered by their business owner’s policy (BOP) or commercial property insurance. Unfortunately, that is usually not the case. Commercial property insurance may provide coverage for damage caused by a burst pipe, but the damage caused by flood waters is typically not covered.

Flood insurance is designed to protect businesses from the physical impacts of flooding, including coverage for floors, walls, furniture, equipment, fixtures, displays, and inventory. Excess coverage is available for businesses whose risks may exceed the limits of a flood insurance policy available through the NFIP.

So, who needs commercial flood insurance? In short: every business.

Commercial Flood Insurance

Any business in a high-risk flood zone — which FEMA calls Special Flood Hazard Areas — should have flood insurance. If your business is in an area that receives heavy to moderate rainfall or experiences significant snowmelt, flood insurance can help ease the financial impact of flood damage.

It is important to consider that approximately one in four flood insurance claims are made for properties outside of high-risk flood zones, according to FEMA. And while most people tend to associate floods with coastal areas and hurricane-related storm surges, inland flooding is a problem for properties all over the country, making it crucial to understand your business’s flood exposure.

You can determine your flood zone by using our Flood Zone Lookup tool. Although they are often outdated, FEMA Flood Maps can be a good starting point for evaluating the potential risk of flooding. If you’re confused about your flood risk, give us a call at 866-503-5663!

Private flood policies, like those available here at, offer significant benefits over NFIP policies, including more competitive rates, additional coverage options, responsive customer service, and a supportive and streamlined claims process. We also use advanced mapping technology to help get your business more accurate rates. If you’re curious about commercial flood insurance, you can test the waters with a quick and easy quote at — or call us to get started: 866-503-5663.



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