One of the biggest criticisms of the new Flood Re scheme, which came into force earlier in the year, is that it doesn’t cover small businesses. We’ve written lots over the last few years about this: Flood Re has been introduced to provide affordable flood insurance for properties in high-risk areas, but it excludes businesses, buy-to-let properties and new builds.
But according to some recent press reports, there may be some good news for small businesses around the corner. As we wrote in May, the industry has been looking at introducing a ‘Flood Re 2’ to cover small businesses, and this is likely to be launched later this month.
The prime mover in this appears to have been the British Insurance Brokers Association (BIBA), working alongside four insurers who are yet to be named. According to the Financial Times, they will analyse the specific risks facing the businesses concerned before underwriting the ‘vast majority’ of policies. The cover is likely to include property damage, business interruption and theft, and policyholders will have the option to pay higher premiums in exchange for lower excesses.
This has to be very good news if it happens. We will keep you posted if and when we find out any more.