Are You Covered? The Importance of Business Flood Insurance During Spring

Spring in Missouri brings blooming flowers, warmer weather, and, unfortunately, an increased risk of flooding. While many business owners enjoy the seasonal transition, it often comes with a hidden threat that could severely disrupt operations and lead to major financial loss: spring flooding. The reality is, many Missouri businesses assume that their existing commercial property insurance will handle all forms of water damage, including floods.

Unfortunately, that assumption can lead to devastating gaps in coverage when the water starts to rise. That’s why understanding and investing in business flood insurance is crucial for safeguarding your company’s property, assets, and bottom line.

Missouri’s Rising Risk of Spring Flooding

Missouri’s geography and climate make it particularly vulnerable to spring floods. The state is home to numerous rivers and low-lying areas, and when spring rains arrive, water levels can rise rapidly. Torrential rains, rapid snowmelt, saturated soil, and overflowing rivers can combine to create flash floods and prolonged inundations that damage buildings, equipment, inventory, and critical infrastructure.

Recent years have seen an uptick in the frequency and severity of these events. According to the National Weather Service, Missouri experiences multiple flood warnings each spring, often impacting both urban and rural businesses. For companies without dedicated flood protection, a single event can mean not only the loss of physical property but also the disruption of business operations, customer service, and supply chains.

Why Standard Commercial Property Insurance May Not Cover Flood Damage

It’s a common misconception: you’ve got commercial property insurance, so you’re covered for anything that could happen to your building and contents, right? Not quite. Standard commercial property insurance typically covers water damage caused by internal issues like broken pipes or leaky roofs. However, it generally excludes damage caused by external flooding.

This means that if a nearby river overflows or water seeps into your storefront after a heavy storm, your commercial property insurance may not help you recover. That’s where business flood insurance comes into play. It is specifically designed to protect your property from damage directly caused by rising water from natural events.

For business owners in Missouri—especially those near rivers, creeks, or flood-prone urban areas—assuming you’re covered can be a costly mistake. The only way to be sure your business is protected from flood damage is to secure a separate flood insurance policy.

How Business Flood Insurance Works

Business flood insurance typically provides coverage through policies underwritten by the National Flood Insurance Program (NFIP), managed by FEMA, or through private insurers. It is designed to cover two main types of loss:

Building Coverage: This includes the physical structure of your business property, such as walls, floors, HVAC systems, electrical and plumbing systems, and permanently installed fixtures.

Contents Coverage: This protects the movable items inside your business, including inventory, equipment, furniture, and supplies.

Policyholders can choose to purchase either type of coverage or both, depending on their needs. Most NFIP policies come with a 30-day waiting period before they go into effect, which is why planning ahead is essential—you can’t wait until a flood is imminent to get protection.

Coverage limits under NFIP policies are capped, so businesses with higher-value properties or specialized needs might consider supplementing with private flood insurance to ensure adequate protection.

What to Consider When Purchasing Business Flood Insurance

When evaluating business flood insurance, consider the following:

1. Location Risk: Even if your business isn’t located in a high-risk flood zone, you could still face flooding. In fact, FEMA reports that over 20% of flood claims come from properties in low-to-moderate-risk areas. Review flood maps and historical data to assess your risk realistically.

2. Coverage Needs: Assess the value of both your building and its contents. If your operations rely on high-cost equipment, specialized inventory, or sensitive electronics, you’ll want a policy that provides ample contents coverage.

3. Policy Type: Decide whether you want to go with an NFIP-backed policy or seek additional options from private insurers. While NFIP is reliable, private insurers may offer higher limits, business interruption coverage, and faster claims processing.

4. Waiting Periods and Exclusions: Be mindful of waiting periods and policy exclusions. Most policies won’t cover damage from moisture, mildew, or mold not directly caused by flooding. Also, business interruption coverage is not included in NFIP policies and must be secured separately.

5. Deductibles: Like any insurance, flood policies have deductibles. A higher deductible can reduce your premium, but be sure it’s an amount you can comfortably pay in the event of a claim.

Taking the time to evaluate these factors before spring arrives can make all the difference. A well-chosen flood insurance policy ensures your business can recover quickly and continue operating with minimal disruption.

Standard policies often fall short when floodwaters hit. Learn more about how the commercial insurance claims process works in these critical situations and why it’s the safeguard your operation can’t afford to skip.

Keep Reading

Mitigating Flood Risks: What Business Owners Can Do

Insurance is your financial safety net, but proactive risk mitigation can further protect your business from the impact of flooding. Here are practical steps you can take:

Elevate Equipment: Raise electrical outlets, HVAC systems, and equipment above potential flood levels.

Install Flood Barriers: Consider using sandbags, water-activated flood barriers, or other temporary protective solutions.

Seal Entry Points: Waterproof your building’s foundation, seal cracks, and ensure doors and windows are fitted with watertight seals.

Clear Gutters and Drains: Make sure your drainage systems are clean and functioning to allow proper runoff.

Create a Flood Response Plan: Train your staff, back up your data, and ensure you know how to shut off utilities if necessary.

Regular Maintenance: Regularly inspect the property to identify vulnerabilities before flood season begins.

While these steps may not prevent every instance of water damage, they can minimize the extent of destruction and help expedite recovery.

Things to Consider

For Missouri business owners, spring flooding is more than a possibility, but a recurring threat. Waiting until the water rises is too late to act. By investing in business flood insurance, you ensure that your operations, property, and long-term viability are protected against the growing risks posed by seasonal flooding.

Don’t rely on assumptions or hope that your standard commercial insurance will cover flood damage. Take the time to review your policies, evaluate your risks, and secure the right coverage. Business flood insurance isn’t just a smart investment—it’s a necessary safeguard that can make the difference between recovery and closure when disaster strikes.

Work With NEC Insurance to Stay Protected

Don’t leave your business exposed to the next flood or spring storm. Partner with NEC Insurance for expert guidance and customized business flood insurance that prepares you for anything. Get in touch today and protect what matters most—before the water starts to rise.

Are You Covered? The Importance of Business Flood Insurance During Spring

Missouri’s Rising Risk of Spring Flooding

Why Standard Commercial Property Insurance May Not Cover Flood Damage

How Business Flood Insurance Works

What to Consider When Purchasing Business Flood Insurance

Mitigating Flood Risks: What Business Owners Can Do

Things to Consider

Work With NEC Insurance to Stay Protected

Share This Post

More Like This

The Importance of Commercial Insurance and the Risks of Neglecting It

How to Stay Protected With Natural Disaster Insurance for Businesses

How Commercial Insurance Rates Are Determined

Beat These Five Risks for Your Small Missouri Business With Insurance

How to Secure Insurance for Employees

How to Handle Winter Storm Insurance Claims

The Importance of Product Recall Insurance for Manufacturers

A Guide to Employment Practice Liability Insurance

The Importance of Having a Workplace Safety Program in St. Louis

About Us

Our Policies

Contact Us