Financial Services News

In recent years, we have seen an increasing amount of flooding in England and Wales.

Preparing for a flood makes good business sense

January 2017


This has focused the attention of many businesses on the importance of having better flood protection as part of their business insurance.

Floods are one of the most common and widespread of all disasters and are growing in frequency and severity. Businesses are more likely to be flooded than burned down. This can result in devastating financial loss, yet fire safety is often considered more important.

By taking action to prepare in advance for flooding, most businesses can save on the cost of lost stock and moveable equipment, as well as a lot of trouble and stress.

It is vital that businesses

  • Find out if they are at risk from flooding.
  • Find out about flood warnings.
  • Ensure the safety of all staff.
  • Plan to protect property and minimise financial risks.
  • Have comprehensive business insurance that protects against flood risks.

All businesses are at risk of financial loss as a result of flooding, even those with insurance.

ESTIMATING POTENTIAL LOSS

The level and duration of potential flooding are important factors to consider when estimating potential financial loss, as some businesses are more at risk than others.

High street shops and other retailers are most at risk due to the combination of high stock value and maximum use of space. Retailers account for a third of all businesses in floodplains.

Businesses that rely on technology and computing, such as IT service companies, use extensive cabling and electrical services. These are frequently located on ground floor level or below and so are especially vulnerable to flood damage.

Warehouses that keep stockrooms almost full have little opportunity to stack goods out of the reach of floodwaters. Single storey properties are especially susceptible.

Taking action in response to flooding helps to minimise both the disruption to your business and the costs of getting your business up and running again. For example, saving vital files and records or installing an emergency generator to power refrigeration units and heating systems to help the building dry out.

Reducing damage and getting your business back on track quickly can make a big difference financially, and reduces the likelihood of losing customers permanently to your competitors. However, only you can decide the level of action that is right for you.

We can offer advice on effective flood action, contact us if you would like any further information.