Does Business Interruption Cover Flooding?

Business-income coverage generally follows the cause-of-loss terms of the property coverage. If flood is excluded from the underlying property form and there is no flood coverage that includes or triggers income protection, a resulting shutdown may not qualify. A separate flood policy may insure physical damage, but its terms do not automatically establish that business income is included.

Check the property policy’s flood definition and exclusions, any flood endorsement or separate policy, and whether it provides business-income coverage. Review limits, waiting periods, locations, and the time needed for repairs. FEMA flood protection and commercial property coverage can have distinct terms; ask the insurer to identify the exact form that would respond to a flood-related interruption.