Water damage is one of the most common business insurance claims. While water might be essential to your business, it can cause a lot of damage. Whether you’ve experienced a storm or a burst pipe, understanding the ramifications of water damage is important. Avoid these water damage claims before it’s too late. Then, touch up your business to assure its safety for the future.
Businesses handling damaged pipes risk seeing hefty water damage claims. Meanwhile, businesses in cold regions need to deal with freezing risks.
Unfortunately, a lot of commercial insurance policies don’t cover water damage caused by frozen pipes. Still, others will if you prove you could not have prevented the damage otherwise. To prevent a frosty catastrophe, make sure your building is adequately heated. Wrap pipes or expose them to warm air to reduce the chances of a freeze-related rupture.
Leaks Over Time
Small leaks, too, can damage your business. HVAC systems, appliances, sprinklers and even your plumbing system can cause a disaster. Wear-and-tear matters. If your business suffers a leak over time, it might suffer ongoing water damage payments.
Like burst pipes, many business insurance policies won’t cover ongoing leak damage. It's normal wear and tear, or you could have otherwise avoided it. If your business is sporting a slow, gradual or intermittent leak—you might be out of luck.
So, how can you prevent this uncovered cost? Schedule routine building check-ups. Examine your business for leaks. Stop them before the trouble begins.
Water-borne materials can spread. Surface water, floodwater and tidal water can damage your workplace’s exterior. If heavy winds exist, you might face catastrophic interior damage from encroaching water.
Insurance covers flooding in complicated ways. In most cases, standard property insurance will not cover weather-related flooding. You might have to get specific flood insurance. In other cases, you might be able to make your standard policy more comprehensive.
Here, it’s a good idea to make sure your business insurance policy covers more than basic flood damage. Check for exclusionary language. Talk with your insurance professional about the costs associated with weather protection. Also ask about flood damage claim support. Your agent can help you settle on the appropriate policy.
Your business deserves full protection. Water damage insurance can assure your business is operational soon after disaster strikes. Meanwhile, risk management and mitigation can defend your workplace. Water damage can destroy any business. If you’re not careful, it can destroy yours. If you’re expecting a storm, contact your insurance provider immediately. Document your home, ask about post-storm options and make sure you’re given the best coverage options around.