This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Staying Liquid After The Deluge: How Business Owners Can Prepare For Flood Season

A Reminder That Flood-Caused Damage Is Not Covered Under Most Commercial Property Insurance Policies

NEW YORK, March 21, 2013 /PRNewswire-USNewswire/ -- Cash flow is the lifeblood of all businesses. But in the wake of a flood, too many business owners are forced to divert substantial funds to repairing flood-damaged property, instead of growing their business. Without flood insurance, it will not be long before a business is under water, according to the Insurance Information Institute (I.I.I.). 

After Hurricane Sandy struck in October 2012, entire businesses were wiped out; their inventories and equipment destroyed. In fact, 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, the National Flood Insurance Program (NFIP) reports. 

"Ninety percent of all natural disasters involve flooding. Hurricane Sandy is simply the most recent and tragic example," said Loretta Worters, vice president with the I.I.I. "From 2007 to 2011, the average commercial flood claim was over $75,000; a substantial amount of money for a business to have to come up with on their own." Though the final figures are not yet in, Sandy produced billions in flood losses to businesses.

Flood coverage is excluded under most commercial property insurance policies. However, coverage for flood-caused damage to a business is available from private insurance companies and from the federal government. Although many companies purchase commercial flood insurance through the private market, more business owners are now inquiring about purchasing additional coverage through the Federal Emergency Management Agency's (FEMA) National Flood Insurance Program. When used in tandem, NFIP coverage can mitigate or "buy down" large deductibles associated with commercial flood policies or simply provide additional coverage.

For small business owners, flood coverage is available as an endorsement to a Business Owners Policy (BOP), available through some private insurance companies, if the business is located outside a flood zone. Flood insurance for small businesses is also available from the NFIP.   

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs