Back That Thing Up: Sewer and Drain Coverage
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You’ve seen it on the news. Maybe you’ve experienced yourself. Cars trying to drive through water that’s sitting on the road as a result of torrential rains and sewers that can’t handle the amount of water that’s coming down. Now imagine those waters backing up through the drains of your manufacturing facility that’s filled with your stock and materials. Will your property policy respond to such a loss? Even if you have flood coverage, this type of loss still may not be covered.
Found in almost every property policy is a “water” exclusion. Within this exclusion, you’ll find that the backup of sewers, drains and sumps will be specifically excluded. Many insurance carriers do have a property extension endorsement where “backup of sewers and drains limits of $10,000 or $25,000 are common. However, these limits may not be sufficient for your business operations if an event of this nature were to occur.
It’s highly recommended that every business owner review this important coverage limit and policy definitions, with their insurance professional, as higher limits can usually be obtained for a nominal additional premium. Speak to an Assurance ‘A’ Team member today.
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