Is Your Business Protected Against Flood Risk?

Flash flooding, intense storms and extreme weather patterns are all on the rise. Between 2011 and 2017¹ the UK saw record breaking weather and this is unlikely to change. As such, extreme weather will continue to cost the UK billions². Andrew Dix, Corporate Client Director at UK insurance broker Gallagher, based in Metro House in Chichester, discusses flood risk and explains how a managed approach to insurance placement and advanced risk management tools can play a prominent role in helping to protect businesses should the worst happen.

Climate change is irrevocably transforming weather risk and bringing with it increased sea levels and heavier rain than ever before. While the Government is working to improve flood resistance, this doesn’t provide an immediate solution. Businesses still need to take the time to assess their risks and secure appropriate cover where necessary.

During 2015/16, severe flooding led to over 300,000 commercial properties being put at risk. These businesses could have better protected their infrastructure with advance planning.  However, when it comes to putting the right protection in place, there are a number of challenges facing UK businesses:

• The different types of flooding, from surface and ground water, through to coastal, river and sewage floods.
• Ensuring a business is equipped to deal with extreme weather events and taking steps to implement a strategy that considers the changing nature of flood events.
• The risk of disruption, including reduced or no access to a premises, restricted turnover, stock damage or extensive repairs.
• Higher premiums and excesses for businesses that have previously been impacted by flooding and therefore may be labelled as high-risk.
• Finding an affordable market-based solution which correctly reflects the risk.

Despite the challenges, simple steps can help to prepare for the physical effects of flooding and reduce the risk of total loss – and flood cover can be arranged to support even the most difficult of cases.

Gallagher offers a multi-flood solution, which assesses businesses actual exposure to flood and calculates an estimated maximum loss. We offer a full risk management service which includes flood inspection, reporting and surveys.

While you can never truly know the weather, Gallagher has access to leading mapping technologies which can assess the flood risk for your business and help you to avoid a potential flood crisis. This is the first step in assessing your flood risk. These tools include geocoding, national catastrophe analysis, Gallagher flood modelling capability, flood analysis, subsidence hazards, and storm surge recognition.  We can perform an in-depth analysis on your postcode to highlight your proximity to flood zones, river banks or storm surge points.

Gallagher can use this information not only to offer practical tips to reduce flood risk but also to put you and your business in a better position with a potential insurer. Our risk survey team identify and quantify your exposure to flood and help them increase their flood resistance and exposures. This helps you negotiate the best terms from the insurance market. We can help you build a flood contingency plan to reduce your exposure to flood and speed up your recovery. Not only do these measures reduce risk, they can help you cut your premium or excess too.

For more information about flood peril and the solutions we offer, please get in touch. Call 0800 612 3760  or visit http://www.ajg.com/uk 

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