diff --git a/flopy/utils/binaryfile/__init__.py b/flopy/utils/binaryfile/__init__.py
index c1f40d40e..c7838021c 100644
--- a/flopy/utils/binaryfile/__init__.py
+++ b/flopy/utils/binaryfile/__init__.py
@@ -2427,7 +2427,7 @@ def _set_precision(self, precision="single"):
 
         try:
             self._build_index()
-        except (BudgetIndexError, EOFError) as e:
+        except (BudgetIndexError, EOFError, OSError) as e:
             success = False
             self.__reset()