Businesses: Flood Damage Insurance

For a business, a flood on your premises can be an unmitigated disaster. Flood damage, structural damage, damage to electrics, and partial or total loss of stock. That can cost anywhere between thousands to millions of pounds. To help you protect yourself against this kind of financial risk, there are many different insurance policies that can help protect your business.

Is there a comprehensive flood insurance policy?

At the moment, there is no insurance policy that protects your business from the kind of devastation a flood wreaks. However, most building and contents insurance policy will include flooding as one of the risks. It’s worth double checking with your provider to make sure you’re covered.

Should your property’s structure, furniture or appliances be damaged due to a flood, you know you’re covered.

There are additional policies you can take out that offers additional industry specific protections. For example, if you run a shop, you can take out stock insurance, which can pay for any stock you lose should a disaster strike.

Another policy you could consider is business interruption insurance. A policy of this type can cover your lost income, should you need to stop trading whilst repairs are carried out.

What can insurance help cover?

Insurance that includes flood damage can cover a range of aspects, from repairing, replacing or rebuilding property that’s been damaged by flooding.

Each policy and insurer will differ on what their definition and restrictions on flood damage are. In general insurers define the risk of ‘flooding’ as an escape of water from the sea, river, canal or lake Etc. or flooding caused by heavy rain. You will also be covered for instances like a burst pipe or broken tank.

If you rent your business premises, then your landlord is the one who is responsible for insuring the building. That being said, any changes or improvements you make to the property won’t be protected so it might be best to consider tenant improvements insurance. You might also consider a business specific contents insurance so that items like furniture and equipment are protected.

An insurance broker can assist you in finding a single, all-encompassing policy that defends your business from the threat of flooding, ensuring you continue to remain afloat.

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