In the event of severe flooding, suffering residents and damaged homes are the first image to come to mind. Often the devastating impact floods can have on businesses is overlooked. Just like homes and residential buildings, many businesses get hit by storms and floods and are forced to be shut down for days, weeks, or even months.
Floods can have dire impacts on businesses and although insurance can cover some of the costs, there are also costs that can’t be reclaimed.
Here are four ways that businesses can be affected by flood damage.
1. Loss of Stock and Assets
Floods can cause significant losses, including stock and assets. Company inventory, vehicles, fixtures, and fittings, and valuable machinery can be damaged beyond repair. Businesses who don’t have the funds to immediately replace these items will suffer major financial loss as they won’t be able to properly run and provide service to their customers.
2. Closing of Business Premises
Flood water entering a business storefront means the business will have to close its doors for weeks or months until it’s clean and safe for customers to return. This, of course, can devastate and deplete reserve funds fairly quickly as bills still need to be paid.
3. Loss of Power and Data
Apart from the damage that the flood can cause to electrical equipment, the unstable power supply during a flood can also cause severe damage to equipment. This can cause massive losses as most equipment and tools can’t be used without power. Computers and servers that have been damaged can cause businesses to lose their data as well.
4. Loss of Revenue
The vast majority of businesses will have to shut their doors during the aftermath of a flood. This can cause several days or weeks of lost revenue until the company is able to reopen. In some instances, employees won’t be able to come to work due to reasons such as an impending roadblock, flooded streets, or maybe even relocation. Add to this the recovery from lost inventory and you have a financial situation that may take months or even years to recover from.
Flooding can have a negative effect on local businesses. Businesses may have to manage problems related to water damage to the building, loss of inventory, power and data, and so much more. Entrusted understands a quick and expert disaster clean up company is a necessity for businesses in times like these. Call the Entrusted team for professional water damage and disaster clean up services after a flood.