Water Damage - By The Numbers

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The cost of a water damage event for a small business can vary significantly based on the severity of the damage, type of water involved, and business operations affected. Here’s a general breakdown of the potential costs:

• Minor Water Damage (e.g., small pipe leak, minimal flooding): $3,000 - $10,000
• Moderate Water Damage (e.g., burst pipe, 1-2 inches of standing water): $10,000 - $50,000
• Severe Water Damage (e.g., major flooding, roof collapse, sewage backup): $50,000 - $200,000+

• If the business must shut down for days or weeks, the loss in revenue could be substantial.
• Small office-based businesses: $1,000 - $5,000 per day
• Retail or service-based businesses: $5,000 - $50,000+ per week (depends on sales volume)
• If employees can't work remotely, payroll expenses continue while revenue drops.

• Electronics, computers, servers: $5,000 - $50,000
• Furniture, fixtures, and flooring: $2,000 - $20,000
• Inventory loss (if applicable): $5,000 - $100,000+ (retail, warehouse, or product storage businesses)

• If the business has commercial property insurance, coverage may reduce the out-of-pocket cost, but there will be: 
  • A deductible ($1,000 - $10,000+)
  • Potential exclusions for floods (separate flood insurance may be needed)
  • Increased premiums after a claim

• Best case (minor damage): $5,000 - $15,000
• Moderate damage: $20,000 - $75,000
• Severe damage (major flooding, structural repairs, long downtime): $100,000 - $500,000+

Other Sources:  Water damage results in severe losses for commercial insureds