--- title: "Flooded and Failing: The Coverage Crisis Facing Small Business Owners" description: While flood risk is a top concern for business owners, most small business owners don't have adequate protection. image: https://blog.afrservices.com/hubfs/Flooded%20Business%20Park.png --- [Skip to content](https://blog.afrservices.com/flooded-and-failing-the-coverage-crisis-facing-small-business-owners#main-content) [![AFR Services Logo - Full Color-3](https://blog.afrservices.com/hs-fs/hubfs/AFR%20Services%20Logo%20-%20Full%20Color-3.png?width=200&height=100&name=AFR%20Services%20Logo%20-%20Full%20Color-3.png) ](https://afrservices.com/) - [Home](https://www.afrservices.com/) - SERVICES Show submenu for SERVICES - [FOR BANKS & CREDIT UNIONS](https://afrservices.com/services/for-banks-credit-unions/) Show submenu for FOR BANKS & CREDIT UNIONS - [Origination Services](https://afrservices.com/services/for-banks-credit-unions/origination-services/) - [Loan Servicing](https://afrservices.com/services/for-banks-credit-unions/loan-servicing/) - 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[Origination Services](https://afrservices.com/services/for-banks-credit-unions/origination-services/) - [Loan Servicing](https://afrservices.com/services/for-banks-credit-unions/loan-servicing/) - [Integration Partners](https://afrservices.com/services/for-banks-credit-unions/integration-partners/) - [FOR INSURANCE AGENTS & BROKERS](https://afrservices.com/services/for-insurance-agents-brokers/) Show submenu for FOR INSURANCE AGENTS & BROKERS - [Commercial Flood Insurance](https://afrservices.com/services/for-insurance-agents-brokers/commercial-flood-insurance/) - [Residential Flood Insurance](https://afrservices.com/services/for-insurance-agents-brokers/residential-flood-insurance/) - [Get Appointed](https://afrservices.com/services/for-insurance-agents-brokers/get-appointed/) - [FOR HOME OWNERS](https://floodrates.com/) Show submenu for FOR HOME OWNERS - [Flood Insurance Basics](https://floodrates.com/) - [Flood Insurance FAQs](https://floodrates.com/faqs) - [Get a Quote](https://afrflood.com/floodrates) - RESOURCES Show submenu for RESOURCES - [COMPLIANCE](https://afrservices.com/resources/compliance/) Show submenu for COMPLIANCE - [Lender Resources](https://afrservices.com/resources/compliance/lender-resources/) - [Property & Casualty Agent Resources](https://afrservices.com/resources/compliance/property-and-casualty-agent-resources/) - [Statutory & Regulatory Guidance](https://afrservices.com/resources/compliance/statutory-regulatory-guidance/) - [NFIP & FEMA Resources](https://afrservices.com/resources/compliance/nfip-and-fema-resources/) - [Upcoming Map Revisions](https://afrservices.com/resources/compliance/upcoming-map-revisions/) - [FAQS](https://afrservices.com/resources/faqs/) - [BLOG](https://blog.afrservices.com/) - ABOUT US Show submenu for ABOUT US - [WHO WE ARE](https://afrservices.com/about-us/who-we-are/) - [CAREERS](https://afrservices.com/about-us/careers/) - [SUPPORT](https://afrservices.com/support/) - [CONTACT US](https://afrservices.com/contact-us/) - [ Get a Flood Insurance Quote ](https://itrackafr.com/quote?id=hs) [ Get a Flood Insurance Quote ](https://itrackafr.com/quote?id=hs) Tue, Jul 1, 2025 # Flooded and Failing: The Coverage Crisis Facing Small Business Owners [ AFR Services ](https://blog.afrservices.com/author/afr-services) Share: [linkedin-in icon ](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.afrservices.com/flooded-and-failing-the-coverage-crisis-facing-small-business-owners) [facebook-f icon ](http://www.facebook.com/share.php?u=https://blog.afrservices.com/flooded-and-failing-the-coverage-crisis-facing-small-business-owners) [Twitter icon ](https://twitter.com/intent/tweet?url=https://blog.afrservices.com/flooded-and-failing-the-coverage-crisis-facing-small-business-owners) [envelope icon ](mailto:?body=https://blog.afrservices.com/flooded-and-failing-the-coverage-crisis-facing-small-business-owners) Flooded and Failing: The Coverage Crisis Facing Small Business Owners 2:24 ![Flooded Business Park](https://blog.afrservices.com/hs-fs/hubfs/Flooded%20Business%20Park.png?width=1536&height=1024&name=Flooded%20Business%20Park.png) The [2025 Gallagher Business Owners Survey](https://www.ajg.com/news-and-insights/2025-business-owners-survey/) is in—and the findings are eye-opening. Based on responses from 1,000 U.S. business owners: - **90%** are at least somewhat worried about insurance not covering a specific event or loss. - **91%** are concerned that a natural disaster could negatively impact their business. - **87%** filed an insurance claim in 2024. - **73%** of those claims were for $25,000 or more. - **27%** filed a flood insurance claim. - **25%** filed for business interruption coverage. - **29%** of business owners say they plan to expand their flood insurance coverage in 2025. Flood risk is clearly on the rise—especially as hurricanes continue to grow in frequency and intensity. Yet, flood insurance remains a low priority for many businesses, particularly small ones. According to [Munich RE](https://www.munichre.com/en/insights/natural-disaster-and-climate-change/flood-usa-lack-of-flood-insurance.html), nearly 100% of U.S. commercial policyholders with annual business income under $250,000 have no flood coverage. And the average business flood claim? Roughly **$90,000.** Imagine trying to reopen after taking a hit that size. It’s no surprise that [40% of small businesses fail](https://www.congress.gov/crs-product/R47631) to reopen after a disaster—and **90% close permanently within two years**. As agents, we must do more to educate business clients on how to protect themselves from catastrophic risks like flooding. At **AFR Insurance Services**, we partner with agents to: - Shop the most competitive flood insurance policies across the private market and the NFIP. - Provide educational tools and resources to help clients understand their true flood risk. Explore our [agent resources](https://afrservices.com/resources/compliance/property-and-casualty-agent-resources/) for guidance on flood insurance terms, coverage requirements, NFIP policies, and more. And don’t forget: Flood damage often results in **weeks or even months of business closure**. During that time, regular overhead costs don’t pause. That’s why **business interruption coverage** is critical—it provides essential support when businesses need it most. At AFR Insurance Services, we’re the trusted flood insurance experts for agents nationwide—backed by **30+ years of experience**, a **growing network of private insurers**, and a **comprehensive approach** to flood protection. **Get appointed today and put our expertise to work for your agency.** [ Get Appointed ](https://afrservices.com/services/for-agents-brokers/) [Flood Insurance](https://blog.afrservices.com/tag/flood-insurance) ## Related posts [![](https://blog.afrservices.com/hs-fs/hubfs/artiom-vallat-4Wux0deJ5Vs-unsplash.jpg?height=200&name=artiom-vallat-4Wux0deJ5Vs-unsplash.jpg) ](https://blog.afrservices.com/dont-let-rising-flood-insurance-premiums-take-a-bite-out-of-your-business) [NFIP & FEMA](https://blog.afrservices.com/tag/nfip-fema), [Flood Insurance](https://blog.afrservices.com/tag/flood-insurance) ## [Don’t Let Rising Flood Insurance Premiums Take a Bite Out of Your Business](https://blog.afrservices.com/dont-let-rising-flood-insurance-premiums-take-a-bite-out-of-your-business) [AFR Services](https://blog.afrservices.com/author/afr-services) Tue, Nov 12, 2024 At a time when everything seems to be getting more expensive, it will come as no surprise to... [ Read more ](https://blog.afrservices.com/dont-let-rising-flood-insurance-premiums-take-a-bite-out-of-your-business) [![](https://blog.afrservices.com/hs-fs/hubfs/pexels-damodigital-1680230.jpg?height=200&name=pexels-damodigital-1680230.jpg) ](https://blog.afrservices.com/how-to-choose-the-right-commercial-flood-insurance-policy-for-your-business) [Lender](https://blog.afrservices.com/tag/lender), [Flood Insurance](https://blog.afrservices.com/tag/flood-insurance) ## [How to Choose the Right Commercial Flood Insurance Policy for Your Business](https://blog.afrservices.com/how-to-choose-the-right-commercial-flood-insurance-policy-for-your-business) [AFR Services](https://blog.afrservices.com/author/afr-services) Fri, Sep 20, 2024 If you’ve ever wondered about the risk of flooding to your business and whether you need flood... [ Read more ](https://blog.afrservices.com/how-to-choose-the-right-commercial-flood-insurance-policy-for-your-business) [![Business Flooding](https://blog.afrservices.com/hs-fs/hubfs/Flooding.png?height=200&name=Flooding.png) ](https://blog.afrservices.com/debunking-flood-insurance-myths-that-cost-business-owners-thousands) [Flood Insurance](https://blog.afrservices.com/tag/flood-insurance) ## [Debunking Flood Insurance Myths That Cost Business Owners Thousands](https://blog.afrservices.com/debunking-flood-insurance-myths-that-cost-business-owners-thousands) [AFR Services](https://blog.afrservices.com/author/afr-services) Tue, Feb 3, 2026 Flooding is one of the leading causes of catastrophic property and income loss for businesses in... 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