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5/21/2014 - Guarantee the livelihood of your business with flood insurance

It's important to have the proper coverage in place, including flood insurance.

Some consider small business start-ups to be the lifeblood of the American academy – with nearly 30 million small businesses countrywide, according to the U.S. Small Business Administration.  And while a strong work ethic, quality products and services enable small companies to remain open and competitive with larger entities, what can be more difficult to overcome are damages that occur as a result of Mother Nature. In fact, following a disaster, as many as 25% of businesses that close their doors in order to take care of repairs never reopen them, according to the Insurance Institute for Business and Home Safety.

With this in mind, it's important to have the proper coverage in place. This should start with flood insurance, which is not a standard part of businessowners insurance.

"[Approximately] 90% of all natural disasters involve flooding," said Loretta Worters, vice president for the Insurance Information Institute. "From 2008 to 2012, the average commercial flood claim was more than $87,000; a substantial amount of money for a business to have to come up with on their own."

A basic commercial flood insurance policy provides for structural damage that occurs as a result of high water levels. This may include levees that breach, heavy rain, melting snow that leaks into the interior of one's building, III indicated. For a more comprehensive package, policyholders can add other protections, such as if the sewer system causes damage.

Smart business owning begins and ends with preparation. For more information on flood plans, be sure to speak with a Selective agent soon as flood season ramps up.

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