Nearly three quarters of businesses are aware of their flood risk, but less than half have comprehensive flood cover
Nearly three quarters (71%) of businesses are aware of their flood risk, but less than half (44%) agree that they have comprehensive flood cover.
This is according to FloodFlash’s Commercial Risk Report 2021, which revealed that more than half (60%) of businesses it surveyed with moderate to significant flood risk struggle to find affordable cover.
With around 1.6 million buildings in Britain having some sort of commercial use, the report found that the group that struggled the most with flood insurance were also concerned about their business continuity – compared to only 14% with a low flood risk.
FloodFlash chief executive and co-founder, Adam Rimmer said: “Only 44% of the businesses we surveyed claim to have comprehensive flood cover.
“No insurer or broker should be comfortable with that statistic – and it’s one that needs to change. The first part of dealing with a risk is knowing the threat is poses to your business. That’s what the risk report is for.”
The insurtech MGA’s report is part of its risk awareness campaign – Flood February, which is set to target commercial lines brokers after record breaking claims in January. For example, it paid Storm Christoph claims in January within 9 hours and 44 minutes, beating the previous record of 26 hours and 15 minutes set after Storm Ciara in February 2020.
On the lower side of flood risk were leisure (4%) and hotel (3%), however the report highlighted that these two businesses are among the highest for disruption from these types of claims when coupled with the long-term disruption from the Covid-19 pandemic.
Under a quarter (18%) of commercial properties in Britain have a moderate or greater risk of flooding.
Ian Bartholomew, FloodFlash’s co-founder said: “When we started FloodFlash we found a lot of insight about flooding in relation to residential property but that very little was known about businesses.
“This report is designed to redress the balance and make sure that the businesses that are so vital to communities across the UK have a similar understanding of their risk. That way they are empowered to do something about it.”