The British Insurance Brokers’ Association (BIBA) has launched a new commercial insurance scheme for businesses that will officially include flood cover “for many commercial premises and let properties”.
BIBA had originally outlined its plans to work on an affordable flood solution back in January and now, having consulted with broker
Guy Carpenter, flood risk specialist Landmark and managing general agent R&Q, it has created what it describes as an “innovative product” exclusively for its members that aims to help them meet the needs of commercial insurance clients and provides flood cover for many businesses that are ineligible for Flood Re.
The commercial scheme has backing from Lloyd’s underwriting capacity and uses an advanced mapping facility developed by Landmark which pinpoints the exact location and features of an individual property. The idea is that this degree of specific and detailed risk reflective information allows each individual business or property to have insurance that is based on its own specific risk.
“BIBA invested time in finding what our members needed to provide to business clients,” explained Steve White, BIBA chief executive. “We have been working closely with Government Ministers and their teams in relation to flood cover for some time. They were as keen as our members for us to find a solution for businesses struggling to access flood insurance. We are delighted that this scheme will now be able to provide protection for many of the businesses that have not been able to buy cover against flood damage.”
According to floods minister Thérèse Coffey, the move to help customers adopting flood resilience measures is particularly welcome.
“This strongly builds on the Government’s broader commitment to tackle flooding, with £2.5 billion being invested in flood defences until 2021, to better protect 300,000 properties across the country,” she said.
The new product is exclusive to BIBA members and quotes are available from December 07 2016 and cover from December 12. As well as including all of the usual insurance covers a business normally requires, it is mindful of the Government’s 2016 budget commitment to invest increased revenues from Insurance Premium Tax in improving flood defences, and quotations can be offered to many of the businesses that have been affected by flooding or which are at risk of flood. They will be offered both advanced flood mapping and a contemporary approach to underwriting that takes account of any flood resilience or resistance measures that the business has invested in.
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