Munich Re unveils new US flood cover for small businesses

Munich Reinsurance America (Munich Re) has launched a new US commercial inland flood coverage to help protect small businesses and habitational properties in low to moderate flood zones.

The endorsement can be attached to a business owners or commercial property insurance policy purchased through a participating insurance carrier.

Nearly 100 percent of commercial policyholders with business income of less than $250,000 had zero flood coverage, according to Munich Re. At the same time, flood is the number one naturally occurring risk in terms of frequency in the United States with 50 states experiencing floods or flash floods in the last five years, according to the Federal Emergency Management Agency (FEMA). Furthermore, almost 40 percent of small businesses never reopen their doors after a disaster.

“The risk of flood has greatly increased as intense and frequent rainstorms have caused the overflow of rivers, streams and other bodies of water in areas that previously were untouched by flooding,” said Sanjay Mehrotra, strategic products operations manager, Munich Re. “As a result, businesses located outside of Special Flood Hazard Areas or 100-year flood zones are now at risk of experiencing a flood event. Munich Re’s new US commercial inland flood endorsement is an affordable option to help protect small businesses and habitational properties from such events.”

“No one likes to think that they need flood insurance,” said Mehrotra, “but today every business owner should be considering this protection.”

Munich Re’s commercial inland flood endorsement offers insurance protection for the building, contents (including business property in a basement), business interruption/extra expense, the costs associated with moving property to safety and debris removal. The coverage is available on a replacement cost or actual cash value basis throughout the United States with the exception of Florida, Louisiana, Hawaii, Alaska, and Puerto Rico. Limits of up to $250,000 are available for buildings, $250,000 for content, and $50,000 for business income/extra expenses per occurrence and in the aggregate.

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