WASHINGTON (July 7, 2020) – This year's hurricane season began in June. Forecasters predict this season will be more severe than average. Hurricanes can take a huge toll on small businesses if owners aren't prepared. Here are a few facts small business owners should know to protect themselves and recover faster after a flood.
- About 40 percent of businesses never reopen after a flood – usually because they were uninsured and can't financially recover.
- Just like homeowners, business owners can buy flood insurance. They do not have to be located in a flood plain to buy a policy.
- There is typically a 30 day waiting period before a flood insurance policy takes effect.
- According to FEMA, flooding occurs more than any other natural disaster.
- Flooded businesses can get federal funding from the Small Business Administration for recovery in the form of loans.
- It's important to have disaster provisions at the workplace, along with evacuation maps, and a working radio to hear instructions from local authorities.
- Be sure to back up all personal and company data on a regular basis to help ensure you are prepared in case information is lost during a disaster. Keep a copy of your organization's flood insurance policy. If a disaster strikes your business, contact your insurance agent immediately and ask what information is needed to file a claim.
- Visit flood.naic.org for more information about flood insurance.