Flood insurance relief on the horizon for businesses » SMEInsider

Flood insurance relief on the horizon for businesses

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SMEs affected by or at risk of flooding may have new hope of finding affordable insurance, thanks to brokers’ plans to put together a package of cover.

The British Insurance Brokers’ Association has said that it is working on a “commercial proposition” for small and medium-sized businesses that would involve large brokers and that would not involve a levy for insurers.

This comes following industry pressure to support SMEs in flood-stricken areas by making sure they could access and afford adequate insurance.

Flood Re, the government-backed scheme launching in April to help households with the same problems, currently excludes businesses. This is despite recognition that companies were clearly struggling in the wake of flooding that hit much of the north of England over the last month or so.

According to the Association of British Insurers (ABI), the storms will lead to £1.3bn in insurance payouts to both homeowners and businesses. What’s more, some 5,000 of the total 15,000 claims for damage to property were made by firms.

Graeme Trudgill, executive director of BIBA, told Reuters: “We are looking to see if we can put a commercial proposition together.”

He made no further comment.