The effects of floods and the resultant water damage are devastating. For struggling small and medium-sized business owners, floods have both emotional and . Water damage destroys business property and inventory, disrupts customers, and supply chain, increases operational costs, and more. While eliminating the risk of floods is impossible, businesses can manage the consequences by ensuring they prepare adequately. Proper preparation includes involving experts in readiness for any uncertainties.
What Are the Common Causes of Commercial Water Damage?
Common causes of business water damage include:
1. Broken Pipes
Several factors cause broken or damaged pipes in your commercial establishment. Common reasons behind damaged pipes are freezing temperatures and changes in water pressure. Unfortunately, it can take a while to realize leaking pipes in your business. However, you should suspect this cause if you come across water stains on the floor, wall, tiles, and ceilings. A musty or damp smell also signals leaking pipes. Even then, identifying leaking pipes can prove difficult, especially if you are not keen. As such, you should schedule a regular professional inspection.
2. Damaged Roofs
Roof damage caused by harsh weather conditions, such as heavy rains, strong winds, and snowfall, also leads to water damage. , structural roof damage from falling branches, and missing shingles can also cause water damage. Damaged roofs leak water into the building, causing secondary damage to the ceiling and floor.
3. Window Damage
While it might seem insignificant, window damage can cause significant water damage to your business premise. Damaged windows and windows without airtight seals allow moisture into the building. If left unresolved, moisture accumulation warps window frames, promotes , and causes more damage. Business owners should include windows and window seals inspection in their routine building maintenance.
4. Natural Disasters
Hurricanes, flash floods, thunderstorms, and harsh weather conditions significantly affect businesses. While natural disasters are unavoidable, business owners should take precautionary steps to ensure the safety of commercial properties. This includes ensuring the commercial property has good drainage systems, clean gutters, and a disaster response plan.
How Businesses Are Affected by Floods
Businesses suffer directly and indirectly from floods and water damage. While can compensate for some costs, some losses cannot be claimed. Below are the effects of water damage on businesses:
· Lost Assets and Stock
Floods and water damage can destroy business stocks and assets. Water can damage business fixtures, inventory, saleable stock, and company vehicles beyond repair. While most of these items are replaceable, the cost of repairing and replacing them puts businesses at a significant loss.
For instance, commercial farmers can lose their crops and livestock. Restaurants are forced to discard contaminated food, and retailers have no choice but to dispose of water-damaged products that can’t be sold. The worst often happens if the business can’t replace essential items immediately. If such happens, the business loses customers, as they will go to alternative suppliers/competitors.
· Closure of the Business
Huge floods and extensive water damage often lead to the closure of the business. While some businesses can proceed with employees working from temporary locations, others don’t have a choice. For instance, restaurants or retailers are forced to close indefinitely. Customers have no option but to find food and other supplies elsewhere.
Restoring your business premise after water damage can take months. Unplanned evacuation also devastates the business. For instance, businesses can’t manage employee wages and utility bills without an income. If the situation proceeds for months, the business depletes cash reserves quickly. Small businesses and startups can’t survive such losses.
· Loss of Power and Data
Electricity and electrical connections are first affected by flooding and water damage. Even if your business wasn’t affected by flooding directly, the surrounding telephone lines and power cables might be affected. Even though communication and power lines are often restored quickly, severe flooding can delay restoration.
Not having a power connection is disastrous for businesses. To begin, defrosting refrigerators and freezers in restaurants and other businesses reliant on these appliances cause massive losses. Manufacturing companies also can’t function without power. Besides disconnection, power surges and water damage on electrical systems damage servers, and businesses can lose . Businesses that rely on electrical equipment should invest in power backup systems.
· Indirect Effects of Water Damage
While businesses can survive physical flooding, they can suffer indirectly in many ways. To begin, suppliers and vendors might have been affected directly by the floods. Extensive flooding may result in road closures, making it impossible to fulfill orders. Customers also won’t buy goods if they can’t access shops, and your employees are affected by road closures. Flooding can also negatively affect the local economy, reducing revenue.
How to Protect Your Business from Water Damage
You can protect your business from the disastrous effects of flooding and water damage by:
- Being aware of your business’ flood risk – Be wary of your area’s flood risk. Always check if the region you intend to establish your business is prone to flooding or any other natural disaster. You should also sign up for flood warnings.
- Proactively prepare for flooding – Adopt various measures to minimize the impact of floods on your business. This includes making flood-resistant property upgrades, moving electrical systems higher, relocating crucial business equipment, and backing up data.
- Review your business continuity plan – Every successful business should have a continuity plan. This helps prepare for unexpected incidences and keeps the business running after an emergency. Your continuity plan should include flood risks.
- Check your – Take out a flood insurance policy for your business, especially if your area of operation is prone to flooding. You should also have business interruption insurance, which protects your business from loss of income after floods. Ensure that you read the fine print and consult an insurance expert to be sure of the policy.
Endnote
Most people focus on the effects of floods on people and properties. The effects of floods on businesses are often ignored, and business owners overlook the importance of preparing for floods and water damage. Businesses often have to deal with the problems of water damage on commercial buildings, lost inventory, power interruption, and more. Having a continuity plan can help businesses resume operations quickly after floods.