SMEs excluded from Government’s new flood insurance programme » SMEInsider

SMEs excluded from Government’s new flood insurance programme

floods

The Federation of Small Businesses (FSB) has reacted to the exclusion of businesses from the Government’s flood insurance programme that aims to improve protection against flooding.

Last week new draft-form regulations were put before Parliament for the Flood RE initiative, which would see the creation of a non-profit organisation that would allow households that are in high-risk flooding areas to obtain affordable priced insurance.

But small businesses have been left out of the programme leading to the FSB criticise the Government for leaving SMEs to fend for themselves.

“The Flood RE draft regulations cause fresh uncertainty for the one in 10 (9%) small businesses at risk of flooding. Many small firms are already finding it difficult to find flooding insurance with as many as 50,000 businesses potentially affected.

“Three per cent of these small businesses currently say flood insurance is unaffordable. Without being included in Flood RE there is nothing in place to protect the smallest of businesses, which are the most vulnerable.  With potentially no provision through the open market, firms will now have nowhere to turn and so will be at risk,” said John Allan, National Chairman for the Federation of Small Businesses.