Reducing Flood-Related Losses

Flood is one of the most confusing hazards our clients face.

Affiliated FM data shows approximately one in 10 locations is flood-exposed; its loss history reveals the potential for a flood loss of US$1 million or greater at a single flood-exposed location is almost twice as likely as a fire loss of US$1 million or greater.

Because emergency actions needed to effectively protect a property from flooding differ from actions needed during a fire, having a general emergency plan is not enough. Affiliated FM loss history shows that facilities with a well-organized FERP sustain nearly 70 percent less damage and resume operations sooner than locations with inadequate or no FERP in place.

Basic Measures to Protect Your Business

Developing a Flood Emergency Response Plan (FERP) helps clients take the proper steps to protect their property before the emergency arises. Affiliated FM offers resources to show you and your clients how to develop an effective FERP, and provides guidelines for those building a new facility or adding an existing one. Until a company has a FERP in place, here are a few basic measures clients can take before and after a flood hits:

Before the flood hits

• Monitor flood conditions and keep emergency response team leader up-to-date.
• Relocate critical or high-value stock, electronic and other key equipment, and critical records files and drawings to a safe area.
• Decrease the potential for fire by shutting off electricity and gas, and shutting down and draining flammable liquid piping systems.
• Secure or anchor outside storage equipment that cannot be moved to a safe location
• Check roof, floor and yard drains to ensure they are clear

After the flood hits:

• Begin salvage procedures, such as drying equipment and dehumidifying key areas
• Ensure fire protection systems are in service
• Assess the actual impact, initiate cleanup, repair and business-resumption services
• Remove standing water and flood debris
• Check, clean and test all electrical distribution system components exposed to flood water or humidity