Protect Your Small Business with Flood Insurance from FloodSmart.gov

Written by Caron Beesley

Flooding is the number one natural hazard in the U.S. It doesn’t matter where your business is located, it can still be at risk from hurricanes, flash floods, blocked storm sewers, snow melt, and so on, and unfortunately the devastation can be costly.

According to the National Flood Insurance Program, almost 40 percent of small businesses never reopen their doors following a disaster because just a few inches of water can cause tens of thousands of dollars in damage and close your doors long enough to lose your customers.

If you operate a small business in a designated flood risk area, investing in flood insurance is not just a good business strategy, it can help protect you from devastating financial loss.  The problem for business owners is that traditional buildings and content insurance rarely provides protection in the event of a flood. Businesses can, however, buy coverage from the National Flood Insurance Program(official website: www.floodsmart.gov) for as little as $162 a year (based on $50,000 of contents).

What is the National Flood Insurance Program?

The National Flood Insurance Program (NFIP) is administered by the Federal Emergency Management Agency (FEMA), which works closely with nearly 90 private insurance companies to offer flood insurance to residential and commercial property owners and renters that are located in areas that are at a high risk of flooding.  Premiums vary depending on whether your business is located in a moderate- to low-risk area or a high-risk area (where coverage is mandatory for businesses with mortgages from federally regulated or insured lenders).

Be aware that the NFIP program is not available to everyone. To qualify for the program you must live in a community that participates in the NFIP (find out if your community participates here).

There are various policy optionsthat cover contents, building damage, or both. This guidehelps explain what is and isn’t covered.

Determine Your Flood Risk at FloodSmart.gov

Is your property in a high-risk or moderate- to low-risk area? Knowing your flood profile will help you understand your risk of financial loss.

You can find out your relative flood risk right now online at FloodSmart.gov’s “Assess Your Risk.” Simply enter your property address to see your relative risk, find links to flood maps, and other flood insurance community resources.

Useful Links

• NFIP’s FloodSmart.gov Website- Checkout FloodSmart.govfor more information on the NFIP program, as well as useful tips on how to prepare and recover your small business from flooding, FAQs about the National Flood Insurance Program, and more.
• SBA Small Business Emergency Preparedness and Disaster Assistance Guide– Includes resources that help small businesses develop a plan to protect their employees, lessen the financial impact of disasters, and re-open for business quickly to support the economic recovery of the community.
•  PrepareMyBusiness.org– This partnership between the SBA and Agility Business Solutions includes planning tips, webinars, information on disaster assistance programs and other resources to help small business owners, plan, prepare for, and recover from disasters.

Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed.

About the Author

Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed. Follow Caron on Twitter: @caronbeesley