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New Flood Cover Launched to Benefit Flood-prone Businesses

By mjackson

In April, the government’s flood insurance scheme, Flood Re, came into force. Flood Re was developed in response to the devastating floods that have been afflicting the United Kingdom for several years. In fact, in 2015, flood damage was responsible for more than 15,000 home and business insurance claims, which amounted to insurers paying out an estimated £1.3 billion.

However, whilst the not-for-profit fund has proven to be greatly beneficial for flood-prone homes, it has not offered affordable flood insurance to flood-prone businesses. That is why the British Insurance Brokers’ Association (BIBA) recently launched a new insurance scheme, which will also include flood cover, for underinsured businesses—including SMEs.

This new scheme was developed collaboratively by flood risk specialists and insurance industry experts. It uses advanced mapping to pinpoint the exact location and specifications of a particular property, and then, based upon the location’s specific risks and flood resistance/resilience measures already in place, helps generate a bespoke insurance policy. Businesses will even be able to choose how much financial responsibility they will bear by having the option to ‘buy back’ any flood excess that is applied because of the business’ location.

The intention behind providing businesses with such a bespoke and comprehensive scheme is to ensure that they are more resilient and are able to quickly recover from disastrous and costly floods. This new scheme will be especially beneficial for SMEs, as it will offer cover to businesses that would not normally be able to afford insurance and/or secure cover because their location is in the midst of a flood-prone area.

For more information about BIBA’s new scheme and your flood insurance options, contact LI Insurance Services today.