When evaluating the state of your business, it is good to know the most common risks you might face. For commercial buildings, the most common business losses are water leaks because of damaged pipes. If you understand how leaks and water damage affects your business, you will be able to manage this risk.
1. Damaged Pipes Lead to Property Loss
A burst pipe can cause immediate water damage to walls, floors, and other important support structures of the building. A damaged sprinkler pipe could spray water on sensitive documents and equipment. Commercial property insurance plans generally cover expenses from water damage that occurs under the following conditions:
- Sudden events
- Fire protection equipment Is damaged
- Walls must be torn and replaced to perform repairs
If you do not have adequate coverage, repair and restoration services may be costly.
2. Water Leaks Can Halt Business Operations
Severe water damage affects your business and can be disastrous for any commercial building. If there is flooding, it may take time to undo the damage and restore the building to a safe condition. This is why it is crucial to contact a water restoration company in Knoxville, TN, as soon as you are aware of the leak. A company with 24/7 availability will be able to respond promptly to any water incident and help you remove water effectively and restore damaged equipment and documents.
3. Some Leaks May Not Be Covered
It is important to read the details of your insurance plan. Most plans do not cover water damage under the following circumstances:
- Flooding caused by sewage backup
- Slow leaks that have gone 14 days or more without repair
- Freezing pipes (if you have not taken precautions)
There’s no stopping it when water damage affects your business. Proper maintenance goes a long way in preventing leaking pipes and other sources of water damage. With the right knowledge and the right insurance plan, your business can manage the risks associated with damaged pipes.