Spring is a wet and rainy season for most parts of the U.S., and that makes it a good time to make sure your business is protected against losses due to water damage. Most water damage arises from three sources:
Common sources of water damage
- Rain or surface water runoff
- Gray or foul water from ice machines, cafeterias, coffee machines, or lavatories
- Water from facility systems like HVAC, boiler rooms, or connections to city supplies
The first step in preventing damage is assessing where damage is most likely to occur. Touring the property and making a list of potential entry points for water can provide the information needed to develop a risk mitigation plan.
After identifying potential sources of water damage, create a checklist that can help ensure a consistent review. Checklists should be updated when new equipment is added or whenever construction takes place that could affect your facility's risk of damage.
Checklist questions
- Is a system in place to surveil for small leaks on a regular basis?
- Are small leaks being repaired promptly?
- When a leak occurs, is it evaluated to determine if it poses any future risk or if it's a one-time occurrence?
- Are facility diagrams updated with recent plumbing changes and all shutoff valves?
- Are shutoff valves regularly checked for proper operation?
- Are all storage tanks (including boilers and hot water tanks) regularly checked for leaks?
- Is a leak response plan in place and do key personnel understand the protocol for handling leaks?
- Who is authorized to call in repair personnel or outside contractors on an emergency basis when leaks are identified?
- When outside contractors are called in, is there a process for monitoring them to ensure systems are maintained?
This brief list can serve as a jump-off point for your own checklist, based on your specific facility. Even if your business is not in a moisture-prone area, spring is a good time to develop a water damage mitigation plan.
For coverage options and considerations related to restoring water damage, see Water Restoration Insurance.
For seasonal guidance on managing spring moisture risks to businesses, see Spring Water Risks and Business Insurance Overview.
Need help? ask your agent for some tips and guidance.
Frequently Asked Questions
How often should I inspect my facility for small leaks?
Inspect high-risk areas weekly and perform a full walkthrough at least monthly to catch small leaks before they grow.
What should a leak response plan include?
A plan should include how to shut off water, who to notify, immediate mitigation steps, and how to document the event for repairs and insurance.
Will property insurance cover water damage from outside runoff?
Coverage depends on your policy; some standard property policies exclude flood or surface runoff, so review your terms and consult an agent.