Commercial Insurance Policy Water Damage Coverage

3/4/2022 (Permalink)

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Are You Adequately Protected For Potential Water Damage?

Owning a business is a big responsibility. Safeguarding your building, equipment and inventory from water damage and other potentially costly perils may be a top priority. Although taking a proactive approach is often helpful, unforeseen situations can arise. For this reason, it’s important to possess business insurance and understand key provisions of your policy to ensure you are adequately protected.

1. Burst Pipes

Insulating exposed supply lines can prevent frozen and broken pipes during the winter. Most coverage does, however, usually include provisions to cover damage resulting from pipe bursts.

2. Water Leaks

Water leaks can also develop from aging infrastructure and equipment failures. Although it may be difficult to find compromised pipes hidden behind walls, performing routine maintenance on your building’s fire suppression and HVAC systems can help prevent some water damage. While every policy is different, most plans cover leaks and subsequent water cleanup requirements, offering some peace of mind.

3. Overflowing Toilets

While many companies encourage proper waste disposal, clogged and overflowing toilets are another common commercial problem. Because not all policies include sewage damage protection, you should carefully examine your plan. To avoid expensive out-of-pocket sewage cleanup costs, you may need to purchase supplemental coverage.

4. Storm Damage

A strong storm can damage your roof and break windows, allowing destructive water infiltration. Flooding can also occur. While storm damage may be covered, flooding is usually excluded from most business insurance plans. To protect your company’s financial security, you should discuss these topics with an insurance agent who can help you assess your risk and purchase flood insurance.

Water damage can result from a variety of scenarios, some of which may not be covered under many business insurance policies. Because water cleanup and restoration costs can be costly, inadequate coverage can result in significant financial losses. For this reason, it’s crucial for every business owner to analyze their situation and prepare for potentially destructive events.