Sewer Backup Insurance Coverage for Office Buildings, Apartments and Other Commercial Properties

One of the nightmares for a commercial property owner or manager is sewer backup. It is hazardous and expensive since it often requires professionals to clean up. Does your standard commercial insurance policy cover this peril and other types of water damage? 

Endorsement and Limits

Most standard commercial property policies exclude sewer backup.  A separate endorsement provides coverage against this type of peril.  

Some endorsements have coverage limits.  It is highly recommended that you consult with insurance brokers on my team to ensure enough coverage for a potential loss. 

Be sure you understand which wear-and-tear scenarios such as foundation cracks, broken sump pump, would exclude you from being covered by any of the coverages.

“Off-premises” or “On-premises”

A “backup” is a reversal of the direction of water or sewer from the public lines into your premises (“off-premises”), e.g., tree roots growing into a crack of your sewer line causing blockage, or a blockage in your city’s main sewer causing backup onto your property.  Heavy rains causing surface water to form around foundation and in basement may also be categorized as a backup, if not caused by hurricane which is under a different flood endorsement for flood damages.

An “overflow” occurs due to a pipe blockage on your property (“on-premises”), often caused by people flushing not-flushable items down the toilet.

Exact definitions and coverage are subject to exact language, restrictions or limitations in each policy and endorsement.

Some Preventative Measures

• Install a backup prevention valve to prevent sewer backflows by a licensed plumber. 
• Avoid planting trees and shrubs on top of a sewer line, and have a plumber regularly check for roots.
• Educate people about what cannot go down the drain: Flush only toilet paper only, and wipe all cooking grease off cooking utensils before washing them.

We are the Extra-milers to protect your business and properties

The Rick Callaway Team are known as the Extra Milers in protecting your business, employers, employees, and assets. We leave no stone unturned to get you the best deal. No under coverage. No overpricing.   Please call us for a free consultation: Cell 925 788 5558

rcallaway@pdins.com