When it rains it pours!
June was the wettest month on record since records began in 1910. Some places saw a third of a month’s worth of rain in just one hour!
Flood damage to businesses in Cumbria over the past year is predicted to cost the local economy a staggering £500 million.This is just one example that highlights the devastating impact that flooding can cause.
Under the government’s Flood Re scheme, homeowners in flood risk areas have been able to get insurance cover since April this year. However the scheme is not yet available to businesses.
Affordable business flood risk insurance is a different animal to that of Flood Re insurance for homeowners. Due to the huge diversity of businesses and types of business property, the issue of insurance becomes more complex. There is also an argument that the subsidy for insurance – that Flood Re provides – is harder to justify for businesses. Some say such a scheme doesn’t create a level playing field as businesses in low risk areas could end up subsidising those in high risk areas.
But, the insurance sector is working with the government to find a suitable flood risk insurance solution for businesses. It’s important to get the right framework and model in place that meets the demands of this issue. So, while it may take some time, and prove somewhat frustrating to those badly affected by flooding, there are some insurance solutions which can provide some cover.
To ensure your business can carry on as best it can during such testing times, please get in touch with us to find out how we can help.