A leading Teesside-based insurance broker is calling on the Government to ‘level the playing field’ and do more for SMEs in flood affected areas, after announcing its intention to look into the possibility of introducing a flood reinsurance fund scheme for small business owners.
The Prime Minister has said that the Government is looking at introducing the scheme, similar to that of Flood Re, which is already benefitting homeowners in at risk locations.
Flood Re is a collaboration between the insurance industry and the Government, introduced in April, that has been designed to enable affordable flood cover for homeowners living in areas at the highest risk of flooding, as well as increases availability and choice of insurers for customers.
However, Jonathan Willett, director of Henderson Insurance Brokers Teesside, believes the initiative should be extended to support the business community.
He said: “This is a welcome, albeit small, boost for small business owners who have been affected by or are situated in at risk areas. While Flood Re is beneficial to some homeowners, small businesses have also borne the brunt of devastating floods and adverse weather conditions in recent years. This has resulted in, in many cases, insurers requesting higher premiums for reduced cover, which is impacting on small business owners.
“In cases where businesses have suffered from flooding on more than one occasion in less than a decade, quotes have risen to unaffordable levels, so a similar initiative to Flood Re, in which there is a cap on the cost of insurance, would be a sensible move.”
According to the Flood Re website, ‘Small and medium enterprises (SMEs) and leasehold properties are not included in Flood Re, because there is already an effective and competitive property insurance market covering them. Neither the ABI, nor the Government, is currently aware of any evidence to suggest that affordable flood insurance will cease to be widely available for them in the future.’
Mr Willett added: “I hope that this initial announcement is a sign of things to come and that we are on the right to track to levelling the playing field amongst the small business community.”