Oh, that's awful! We had faaar too much excitement when our basement flooded back in December, and installed a sump pump then. From experience (as a design/builder) I can offer a bit of insight.
The sump pump probably failed due to 1 of 3 causes (the most common):
1) The power source connection was interrupted. (could be that shaky switch connection- Should take all of 5 minutes to shut off circuit, open outlet/swithplate, and tighten connections, then reclose)
2) The internal fan was blocked by dirt, small rock, or other debris.
(I always recommend installing some type of filter between the soil/surroundings and the pump itself. Lining the pump enclosure with landscape fabric works well, as it lets water through the perforation, but nothing else.
3) The outlet hose/pipe is too great a distance for the size of pump. With the pump came details on how far and how high (rise) it's capable of pumping. Very frequently, plumbers and others disregard those guidelines, which only comes back to haunt the home-owner. It's always good to have a bit more horsepower than you'll likely need)

If none of the above scenarios fit, then likely it's a failure of the pump itself, and should be covered under warranty. Each manufacturer has their own policy, but it's likely you'll only get the unit replaced from the manufacturer. The installer would be the next to talk to about damages, subject to their warranties/ guarantees as well as local laws/ statutes.

Hope this helps & good luck.
OH, if you need it... A builder's trick to remove the standing water would be as follows:
- A Wet/Dry vac (one of the large 12 or 16 gallon variety- I've used a Craftsman with great results) is installed as close to a exterior doorway as possible and propped up on a flat stable surface. The vac's tank outlet is fitted with a hose adapter, which runs downslope and out to wherever it will not cause erosion or pooling outdoors. The slope must be continually down though. With the flat "squeegee" like fitting, the vac will suck the water into the tank, then siphon-action will take the rest out. Initially, you may need to draw in a hose-full of water, then open the top of the vac to start the siphon. Check on it every 10-15 mins to be sure the siphon is still running. The last small amounts of water can be pulled out by working the vac hose around the rooms. After that, fans, heaters, or cross-draft will take care of the rest. It's good to have a water restoration or wood-destroying pest company come in to pre-treat against mildew/ dry-rot just to be safe.
M

We had the same thing happen several years back, only a month after we had completed a $45,000 job to finish the basement. Our homeowners insurance covered the damage, but it was a hassle getting things back to the way they were. Right after that we installed a battery backup system. The backup system was called "Ace in the Hole" and you can find them at any Home Depot, Lowes or Menards there in the Chicago area. I highly recommend having a backup if there is anything of value in your basement.

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Thanks for your insight guys. We have two sump pumps in two sides of the basement and both have battery backups. Per the suggestion of the insurance agent, we opted out of flood insurance for the basement because of the battery backup. The rest of the house is covered. It's basically down to going after the company that made the sump pump since the plumber said that it's the swtich that failed. We had no power interruption whatsoever, and even if we did, the battery backup would have worked if the sump was operating properly. I think the restoration company is starting work later today or tomm. A lot of the water is leaving the area now that a new pump is installed. Def not fun dealing with all this.

As of now the sump pump manuf. says they'll cover the damges if their engineer find thats the pump failed. Hoping for the best, as I don't see any alternatives.

My backup had its own pump system so that if the main sump pump failed for any reason (power, defective float, defective pump motor, etc.) then once the water rose in the sump well to a bit higher lever (but below the point of overflowing to the basement) then the backup system would get triggered. It would also set off the house security alarm system.

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How did your basement flood?

For whatever reason the backup system didn't work either . What'r the chances?!

Our basement flooded as the result of a defective sump pump and we didn't have a backup at that time.

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