It seems that things are on track for what could be called Flood Re 2. According to recent reports, a new scheme to extend Flood Re to cover businesses is likely to be launched in the autumn. It’s not good news for all businesses: it seems that only smaller businesses will be covered, but precise details have not yet been announced.
We reported back in January that this winter’s floods had hit businesses particularly badly, and many weren’t covered by insurance because it was too expensive. While Flood Re, which came into force in April, offers affordable flood insurance for homeowners, businesses aren’t covered. But sustained pressure from interest groups led to a U turn on this and so we now await ‘Flood Re 2’.
But however effective Flood Re 2 turns out to be, it won’t help if businesses haven’t got the correct insurance in the first place. A business insurance expert has recently written about what to consider when buying commercial insurance, which can be summarised as follows:
- Think about what you actually need for your business – it’s not a question of one size fits all. For example, many off-the-shelf commercial policies include high levels of travel insurance which is absolutely pointless if you rarely travel long distances.
- Don’t necessarily go for the big insurance names. Many smaller insurers offer excellent cover. What’s important is to do your research and compare the policies on offer carefully. If they’re available, read case studies of businesses which have been helped by insurers in the past.
- You don’t have to have all your cover with one provider: you could have a mix of different insurers. Match the relevance of different aspects of the cover on offer to your specific business needs.
If you have complicated needs, then it’s probably best to get expert independent advice on which policy is the best for you. Business insurance is far more complex than residential cover and needs to include items such as business interruption. We’ve written a guide to this, which explains what it is and what it should cover. And in the event of needing to make a claim, one of our specialist commercial loss assessors is only a phone call away.