Type of Coverage:

Commercial Flood Coverage from GMG Insurance Laguna

We all recall the flood and subsequent damage caused in December 2010 after five days of consistently pounding rain. Downtown Laguna Beach was completely under water. Streets were closed and workers in the business district were advised to stay home. Shop owners were left mopping up mud and sand inside downtown stores.

This is a reminder to us why Flood insurance for businesses is so important. At GMG Insurance Laguna we can help you obtain the coverage you need. Even if your business is one of the low-risk zones identified by the Federal Emergency Management Agency, it could be wise to add a flood insurance policy to your insurance portfolio. The average commercial flood claim is about $85,000, and nearly 40% of small businesses close permanently after a flood event, according to the National Flood Insurance Program. If you are in a high-risk flood zone, you might be required to buy commercial flood insurance.

Options Available

You can get business flood insurance that covers only the contents of your worksite. That may be fitting for businesses that lease their workspace. Contents coverage insures losses for personal possessions at the workplace, curtains and movable items. Areas below the lowest elevated floor may be excluded from a flood policy, so we will do a thorough review of all your locations, contents and flood risk zones.

If you own your building, you will want to get insurance for the structure as well as the contents. It is possible to cover multiple locations. A business flood policy will cover the building, its foundation and installed items, and it typically insures the cost of debris removal. It will exclude coverage for mold damage that could have been prevented or that didn’t result from the flood event. Exterior structures, vehicles and income losses due to business interruption aren’t insured under a flood insurance policy, though some excess lines insurers might have coverage available. We will search out what is available for any special needs you might have.

Costs and Coverage

Companies in low-risk or moderate-risk areas might qualify for a Preferred Risk Policy. These offer the lowest premiums and allow the policyholder to combine building and contents coverage in one policy. You can cover up to $500,000 for your work building plus $500,000 for its contents.

Companies in a high-risk flood zone must cover building and contents separately, and limits and coverage vary. If you need higher limits than the policy offers, it may be possible to secure a commercial excess flood insurance policy. Premiums for flood insurance are based on occupancy, the number of floors the building has, where you store your contents, the year your building was built, and your occupancy, among other criteria.

Hazards covered include physical damage to your company’s building, its electrical, plumbing and HVAC systems, as well as furnaces, water heaters, installed appliances and more. Rugs, wall coverings, window blinds, and attached garages can all be included, as can debris removal.

Insure your business’s structures and contents against flood damage.

Turn to GMG Insurance Laguna for knowledge, attention and reliability regarding your business insurance needs. Contact us (949) 715-7981 or email at