Member Article

Businesses in deep water warns Bluefin

The region’s businesses are being advised to examine their flood insurance cover to make sure they have the appropriate level of cover.

The warning comes as public sector spending cuts lead to the postponing of several multi-million pound defence schemes aimed at protecting thousands of homes and commercial premises across the country.

Over 5 million people in England and Wales live and work in properties that are at risk of flooding from swollen rivers or surging seas.

Homes and businesses across the North East had to be evacuated after more than a month’s worth of rain fell in just 24 hours during intense summer floods in 2009.

Philip Jackson, Bluefin flooding expert, said: “In the current climate of austerity and economic pressure, when businesses are looking for ways to reduce spending and manage their costs, there may be a temptation to cut back on expenses such as insurance”,

“That would be a short-sighted decision as the effects of flooding can often result in much higher costs than simply replacing damaged equipment. Business continuity insurance is now essential, for example, to provide cover against lost income due to IT system failures, lost work time and restricted access to premises.”

The effects of climate change are having a huge on these shores with Britain experiencing increasingly harsh winters, often plagued with prolonged snow and ice, along with threats of drought and flooding in the summer.

The cost of insurance claims following the 2009 floods in Cumbria is now estimated at £206million with 60% of this cost relating to business damage.

He added: “The cost of flood damage can have a devastating effect on businesses. Businesses in the North East must be more proactive about covering themselves against the risk of flooding despite the current economic climate. As a precaution businesses should look again at their insurance policies and identify areas where they are not covered.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .