Owners of leisure properties often have airtight commercial liability insurance to protect them from lawsuits, but may not apply this same diligence to property damage coverage. Attorney Bill Voss explores vital coverage options to protect fun parks, arcades, or tourist attractions when flood waters rise.
Flood Damage Coverages to Consider If You Operate a Tourist Attraction
The first thing business owners must know is that most private commercial Insurers will not cover flooding caused by storm surge, hurricanes, or other natural disasters. Owners should purchase an additional policy for flooding damage through the National Flood Insurance Program (NFIP) to ensure they will be covered in an extreme weather event.
In addition to an NFIP policy, owners may want to consider policy endorsements that can offer further protection from a flood, such as:
- Cleanup and biohazard coverage. Waterparks may be contaminated by flood waters, requiring draining all existing pools and refilling them with clean water before reopening. A policy extension for cleaning and drying services can help offset the increased costs of ensuring the park is free of microbial contamination and safe for swimming.
- Rental insurance. If your operation relies on rented vehicles, rides, animals, or equipment, you may be forced to repay vendors if their property is damaged. Rental insurance can pay to replace machinery, food trucks, trailers, tents, and other paraphernalia on loan.
- Inland marine coverage. If you run a mobile carnival, funfair, or traveling festival, you should secure your property with inland marine insurance to cover damage to any items damaged while in transit.
- Refrigerated goods coverage. Food and drinks may be contaminated by flood waters or washed away completely, preventing you from offering concessions to your visitors. Refrigeration and spoliation coverage can pay to replace lost perishable food items.
- Seasonal and special event insurance. If your business makes most of its profits at a certain time of year, a flood can mean the loss of a disproportionate amount of your yearly profits. Seasonal insurance can provide additional payment for a covered loss during peak operations, while event cancellation coverage can replace lost revenue for special events (such as weddings) that were canceled due to flooding.
- Business interruption insurance. Business income protection is one of the most valuable forms of insurance, as it replaces lost profits for up to six months after a covered event and allows operations to continue during the restoration period.
If your flood damage claim has been denied, a commercial insurance attorney can help you get fair payment for your losses. Simply fill out the form on this page today to contact the Voss Law Firm or order a free copy of our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.