One of the biggest enemies of corporate America is unacceptable risk. Although exposures can be difficult to identify and evaluate, when it comes to flooding, there are steps businesses can take to identify, evaluate and mitigate those hazards.

Flooding can happen anywhere, anytime. It can result from heavy rains, melting snow, inadequate storm water drainage systems, failed protective devices such as levees and dams, or tropical storms and hurricanes--all of which can destroy buildings and businesses.

In fact, at least 25 percent of businesses that close because of a disaster never reopen, mainly because of insufficient insurance. Business leaders can better protect themselves, their business and their employees by having and advocating sufficient flood insurance.

The National Flood Insurance Program--part of the Federal Emergency Management Agency--enables risk managers to buy federally backed flood coverage designed to provide an alternative to potential disaster assistance.

Beyond just buying the coverage, however, flooding risks can be reduced by:

o Preparation: Have an emergency plan, and reward employees for doing the same.

o Participation: Take advantage of all the benefits the NFIP offers, and work with your community to prevent financial loss and protect your physical property. For every $1 spent on mitigation, $4 on average is saved.

o Protection: Find out what kind of flood insurance your business may need. Help your employees determine the same for their homes and property.

Speak with your agent or broker, or visit www.floodsmart.gov to learn more about your property's flood risk and how you can reduce it.

In addition to protecting your business, the NFIP can guide you to materials to help educate and protect your employees as well.

Special Reports /

How Can Risk Managers Reduce Their Flood Risks?

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