Market Overview

Munich Re Launches New Commercial Inland Flood Coverage to Protect Small U.S. Businesses


Survey shows most small businesses have zero flood coverage

Munich Reinsurance America, Inc. (Munich Re) announces a new U.S.
commercial inland flood product to help protect small businesses and
habitational properties in low to moderate flood zones. The endorsement
can be attached to a business owners or commercial property insurance
policy purchased through a participating insurance carrier.

"The risk of flood has greatly increased as intense and frequent
rainstorms have caused the overflow of rivers, streams and other bodies
of water in areas that previously were untouched by flooding," said
Sanjay Mehrotra, strategic products operations manager, Munich Re. "As a
result, businesses located outside of Special Flood Hazard Areas or
100-year flood zones are now at risk of experiencing a flood event.
Munich Re's new U.S. commercial inland flood endorsement is an
affordable option to help protect small businesses and habitational
properties from such events."

A recent survey of 157 insurance agents by Munich Re found that nearly
100% of commercial policyholders with business income of less than
$250,000 had no flood coverage. Yet, according to the Federal Emergency
Management Agency (FEMA), flood is the number one naturally occurring
risk in terms of frequency in the United States with 50 states
experiencing floods or flash floods in the last five years. According to
FEMA, almost 40
percent of small businesses
never reopen their doors after a

"No one likes to think that they need flood insurance," said Mehrotra,
"but today every business owner should be considering this protection."

Munich Re's commercial inland flood endorsement offers insurance
protection for the building, contents (including business property in a
basement), business interruption/extra expense, the costs associated
with moving property to safety and debris removal. Coverage is available
on a replacement cost or actual cash value basis. Flood-induced sewer
backup or overflow is covered if it occurs within 72 hours after the
flood recedes. Limits of up to $250,000 are available for buildings,
$250,000 for content, and $50,000 for business income/extra expenses per
occurrence and in the aggregate. Higher limits may be available upon

Munich Re's commercial inland flood endorsement is available throughout
the United States with the exception of Florida, Louisiana, Hawaii,
Alaska, and Puerto Rico. Munich Re also offers a U.S. personal lines
inland flood endorsement which is available through participating
insurance carriers.

About Munich Reinsurance America, Inc.

Munich Reinsurance America, Inc. is one of the largest reinsurers in the
United States. We provide reinsurance coverages, specialty reinsurance,
and risk management solutions to commercial and personal lines insurance
carriers, agents and brokers, program administrators, and managing
general agents. Our admitted and non-admitted insurance company
affiliates also offer specialty insurance products. We provide insurance
carriers with white label products to help protect against the
devastating effects of natural catastrophes and emerging risks, while
our Innovation Lab offers client solutions in a rapidly evolving
technology risk landscape. We believe that by looking out for our
clients' best interests with innovative risk solutions we can help build
more resilient communities and close insurance gaps.

Munich Reinsurance America, Inc., a subsidiary of Münchener
Rückversicherungs-Gesellschaft Aktiengesellschaft in München ("Munich
Re"), earns high ratings for financial strength from A.M. Best Company.
We serve our clients from our Princeton, New Jersey campus and regional
offices throughout the United States. For additional information visit

Any descriptions of coverage are meant to be general in nature and do
not include nor are intended to include all of the actual terms,
benefits and limitations found in an insurance policy, which forms the
contract between the insured and insurance company and governs in all
cases. Munich Reinsurance America, Inc. and its affiliates disclaim any
and all liability whatsoever resulting from use of or reliance upon this
material. The inland flood coverage endorsement is not intended to
satisfy any mandatory flood insurance requirements of the policyholder's
lending institution for their mortgages or loans. Coverage to satisfy
these requirements is available through the National Flood Insurance
Program (NFIP).

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