The German federal state of Saxony was the most affected region during the severe flood in August 2002, and damage to companies was high. A survey of 415 companies representing a variety of sectors and sizes was undertaken to identify deficits in the flood management of companies. In August 2002, preparedness and precaution of companies was low. Additionally, 45% of the companies had not received any flood warning. Consequently, many companies were unable to perform emergency measures successfully. The mean total damage to companies amounted to 1.1 million euros. However, because of relatively good flood compensation, recovery advanced quickly. After the flood, preparedness and precaution increased, but there is still significant potential for more precautionary measures. The flood warning system should be further improved. Specific incentive and communication programs should be developed for the service and financial sectors, where preparedness and precaution is weakest, as well as for the manufacturing sector, which has the highest damage potential.