Having a business continuity and disaster plan will help to minimize business interruption before and after should a flood occur. Below, we outline how to prepare your business with or without advanced flood warning, as well as steps on filing a flood insurance claim with your Gallagher representative.

Pre-Planning Your Business' Safety Before a Flood Occurs

You don't have to be in a high-risk flood area to be affected by flooding. More than 20 percent of flood claims come from properties outside the flood zone, according to the Federal Emergency Management Agency (FEMA). And since standard insurance policies normally do not typically cover flood damage, you should be reviewing all coverage, communications and business continuity plans quarterly or annually with your Gallagher representative. While flood seasons varies between geographical locations and times of the year, it is never too early to consider purchasing a flood insurance for your policy.

Did you know?

The average waiting period before flood coverage takes effect is 30 days through NFIP — be sure to make this a part of your pre-planning considerations. Contact your Gallagher advisor for more information.

Emergency Response Team and Business Continuity Planning for Flood Preparedness

In addition to your annual and quarterly reviews, you can reassess communications with your emergency response team in preparation for any floods. The best protection is to have a solid natural disaster plan in place should a flood hit.

These documents are to help ensure your employees understand what to do in a flood emergency or where to go for information if a flood occurs.

Advanced Flood Business Preparations

Sometimes notice of a potential flood is provided, such as during tropical storms or hurricanes. If a flood is forecasted by a governmental agency as a result of rising waters, follow the flood preparation items in the list below.
  • Secure all windows and doors throughout property.
  • Unplug and secure any large, loose electrical items.
  • Secure as many items as possible with priority given to files, keys and money.
  • Relocate command center to the highest point available and accessible to rescue workers.
  • Notify staff and corporate of the situation.
  • Assist all staff, especially those with disabilities and special needs, to the highest point available for access to rescue workers.
  • Ensure you bring your items with you, including cellphones, smartphones, tablets, laptops, battery operated handheld radio(s), flashlights, cameras, additional chargers and batteries, water, food, first aid supplies and additional items from your disaster supply list.
  • Check local emergency broadcast radio for information regarding the flood.

Flood Preparations Without Advanced Warning

If a sudden rainstorm or other event occurs with no notice, recognize the danger of a flood's rapidly rising and moving water which may be carrying debris. Water also increases the possibility of electrocution due to downed power lines, and can contain biohazard items. Safety, at this point, is the first order for both your staff and tenants. Use any previously mentioned safety guidelines in addition to those listed below:
  • Secure all windows and doors throughout property.
  • Unplug and secure any large, loose electrical items.
  • Secure as many items as possible with priority given to files, keys and money.
  • Relocate command center to the highest point available and accessible to rescue workers.
  • Notify staff and corporate of the situation.
  • Assist all staff, especially those with disabilities and special needs, to the highest point available for access to rescue workers.
  • Ensure you bring your items with you, including cellphones, smartphones, tablets, laptops, battery operated handheld radio(s), flashlights, cameras, additional chargers and batteries, water, food, first aid supplies and additional items from your disaster supply list.
  • Check local emergency broadcast radio for information regarding the flood.
When driving in an area where flooding may occur or is currently flooding, make sure to avoid:
  • Driving if high water has already made roadways impossible to cross.
  • Crossing water without checking for downed power lines. Listen for humming, which is an indication of electricity. If signs of electricity exist, do not cross water — wait for help.
  • Items traveling downstream — they can trap you in your vehicle if you're in its path.

Post-Flood Recovery Guidelines for your Business

While organizing the post-recovery efforts for your business, be sure to review the flood plan for problems, and update as necessary. Also, replace and restock items on your Disaster Supply List. You may also review your Business Interruption and Extra Expense Claims list on how to assess possible business interruption impacts, as well as potential claims coverage. Lastly, complete any mitigation items as directed by FEMA or any other insurance carrier.

Exterior Building Guidelines

  • Inspect your property for immediate dangers — watch for animals, particularly snakes, that may have come in with the floodwaters.
  • Secure any areas where dangers exist with caution tape. Keep areas cordoned off until a determination is made regarding safety.

Interior Building Guidelines

  • Use flashlights to examine walls, floors, doors and windows to ensure building is not in danger of collapsing.
  • Inspect the foundations for cracks and other significant damage, paying particular attention to retaining walls.
  • Complete an incident report and forward pictures to your supervisor, corporate office and insurance agent.

When inspecting your property, make sure to avoid all areas with flooded electrical circuits and submerged power lines or electrical appliances until the power has been cut. Also, watch and listen for leaking gas lines, electrical lines or flammable materials in the water such as gas. Try to limit use of cellphones, laptops and hand-held radios to preserve battery life in the event of power failure.

You will also need to contact the following groups after a flood:

  • Emergency services, such as the fire department gas and electric companies, as necessary based on the review of the property.
  • A security company if there is sufficient damage to the property to arrange for surveillance. Instruct them to assist in directing emergency vehicles into the area and supply a list of approved employees to reduce the possibility of looters.
  • Local hospitals regarding injured staff and keep a log of all calls.
  • Your corporate office and insurance carrier to verbally report damage so that an adjuster can be sent to the site.
  • Vendors, such as cleaning services, biohazard companies, electricians or plumbers, to help reduce further damage to the property that might result from standing water and prevent mosquitoes from developing.

While organizing the post-recovery efforts for your business, be sure to review the flood plan for problems, and update as necessary. Also, replace and restock items on your Disaster Supply List. Lastly, complete any mitigation items as directed by FEMA or any other insurance carrier.

Filing a Commercial Flood Insurance Claim

After receiving the "all-clear" signal from your local agencies or emergency personnel, you can begin your post-flood measures. Once it's safe to return to your business, examine your property and complete your Preliminary Damage Assessment Report with pictures or video of the damage and property, a facility inspection and inspection to the foundations for cracks and other significant damage, paying particular attention to retaining walls. You may also bring your Business Interruption and Extra Expense Claims list to determine flood insurance coverage and business operations impact.

It's important that your Gallagher claim handler receives this information as quickly as possible. Also make sure to maintain an up-to-date Policy and Claim Reporting Information Directory, should such an event occur.

Claims Reporting Reference Guide

Coverage FAQs and forms to help your claims process.

Download Claims Guide

Find your Insurance Carrier

Use our Commercial Claims Contact List to find phone numbers and email addresses of your insurance carrier.

View Claims Contacts

Starting a Commercial Flood Claim

In order for a commercial flood insurance claim to be initiated and an investigation to being, the claim handler provide as much detail as possible. The following is recommended:

Claims Process for Commercial Flood Insurance: What to Expect

Throughout the claim investigation process, you may have various coverage-related questions. Please reach out to your Gallagher representative with specific policy and claim questions. During this high-volume claim reporting period, you should anticipate the following:
  • The adjuster assignment and initial contact may take some time. Some insurers may use adjusters under contact rather than staff adjusters, so the adjuster's contact information may appear different than expected.
  • Access to the affected areas may be limited for some time after the storm clears. It's not uncommon to have standing water that becomes polluted.
  • Competition for labor and materials will be high, which could impact the timeframe and costs associated with repair and remediation.
  • Working with your adjuster closely. If you have questions regarding the resolution process, your Gallagher representative is here to assist and ensure you are in control of the claim progress.

Your policy and insurance company's website will contain important information about how to handle claims and manage losses. To summarize your policy details, use our Policy and Claim Reporting Information Directory.

Related Products & Services