Affordable insurance for businesses at risk of flooding

business-flood-2It’s great news for businesses located in flood risk areas as the British Insurance Brokers’ Association (BIBA) announces the launch of a new product aimed at helping commercial properties find competitive insurance.

When the government announced the launch of Flood RE in early 2016 households applauded while small businesses wondered why they had been excluded. Small and Medium Enterprises across the country were left ‘high and dry’ and unable to find affordable cover.

However, thanks to the combined efforts of BIBA and key players in the insurance industry; SMEs have been thrown a much-needed lifeline. The new scheme recognises the problems faced by businesses in flood-prone areas and provides a genuinely innovative solution.

By using advanced mapping technology underwriters are now able to assess flood risk at a ‘property’ level rather than a ‘postcode’ level. By pinpointing individual properties insurers can get a much clearer picture of individual risk and calculate premiums accordingly.

As well as using state-of-the-art mapping the scheme also takes into account any flood resilience or resistance measures the business has adopted. Businesses in high flood risk areas will be given the opportunity to ‘buy back’ any claims excess, thereby giving them greater control over the risk they are prepared to bear themselves.

Commenting on the product launch Steve White of BIBA said “We have been working closely with Government Ministers and their teams in relation to flood cover for some time. We are delighted that this scheme will now be able to provide protection for many of the businesses that have not been able to buy cover against flood damage.”

Floods Minister Thérèse Coffey echoed the sentiment saying “One year after last December’s floods it’s great to see the insurance industry now able to provide affordable flood insurance for small businesses and I particularly welcome BIBA’s emphasis on helping customers adopt flood resilience measures so businesses get back in their properties and open sooner.”

There are an estimated 260,000 businesses at risk of flooding in the country and with global warming the problem is predicted to get worse. The new scheme is only available to BIBA members, including Quoteline Direct, to find out more visit our Business Insurance pages or Tel: 0161 874 8020 to speak with a consultant.

 


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