There’s one determination that every business owner – regardless of their industry – needs to assess each year: how much flood insurance to purchase, based on the potential that a flood will happen.
If history is any guide, thousands of business owners stand to be adversely affected by flooding. Since 2012, for instance, all 50 states have experienced some type of flooding event.
Beyond the severe havoc it can wreak on the physical structure of your business, a flood can also ruin inventory. When a flood hits, you may end up losing revenue, whether you’re closed for repairs, restocking or both.
The impact of a flood doesn’t have to mean the end for your business ─ but you’ve got to fully understand what’s at stake and be well-prepared in advance.
Coastal cities still in the crosshairs
Though there isn’t a single state that’s not at risk for flooding, the potential for flooding is on the rise due to increasing water levels in the Atlantic. Miami, New Orleans, New York and Tampa each face an increased risk in the coming years for a flood that could cost each city’s economy $15 billion or more, according to an estimate from Risk Management Solutions.
“Businesses that prepare for a disaster – which includes purchasing the proper insurance coverage – stand the best chance of financially surviving,” said Loretta Worters, vice president of communications for the Insurance Information Institute.