19th June 2008
The availability of commercial flood insurance could be restricted if more is not done to improve defences, the Association of British Insurers (ABI) has warned.
Last summer's floods prompted 30,000 commercial claims, many of which were from small businesses, costing around £1 billion.
In the UK, both domestic and commercial flood cover is usually included in property insurance policies. However, the ABI said today that over 500,000 domestic properties may become uninsurable for flooding if flood prevention is not improved.
ABI spokesperson Malcolm Tarling told More Than Business News that many small firms could be affected too: "Unless the government commits to serious action, we won't be able to commit to providing that level of cover in the future."
The ABI wants the government to provide a dedicated budget for tackling surface water flooding, the cause of most of last summer's problems, and for more money to be spent on preventing river and coastal flooding.
Tarling also urged small business owners to plan ahead for possible flood events. "Insurance is not a substitute for a lack of contingency planning," he warned.
Business flood insurance 'under threat'
Last summer's floods prompted 30,000 commercial claims, many of which were from small businesses, costing around £1 billion.
In the UK, both domestic and commercial flood cover is usually included in property insurance policies. However, the ABI said today that over 500,000 domestic properties may become uninsurable for flooding if flood prevention is not improved.
ABI spokesperson Malcolm Tarling told More Than Business News that many small firms could be affected too: "Unless the government commits to serious action, we won't be able to commit to providing that level of cover in the future."
The ABI wants the government to provide a dedicated budget for tackling surface water flooding, the cause of most of last summer's problems, and for more money to be spent on preventing river and coastal flooding.
Tarling also urged small business owners to plan ahead for possible flood events. "Insurance is not a substitute for a lack of contingency planning," he warned.
Tags: Insurance
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