What is a flood?
A flood is defined as an overflowing of a large amount of water beyond its normal confines, especially on land that is normally dry.
Who needs flood cover?
Any business should consider their own vulnerability to being affected by a flood. The risk of flooding to a business depends not only on the location of their premises but also on their individual risk management approach. While being located on a flood plain will typically pose a higher flood risk for a business than being on the top of a hill, certain measures (such as concrete flooring or raised machinery and electrical supply) can provide effective risk mitigation even for those with premises next to a flood-prone river.
What does Flood insurance cover?
Having flood insurance covers you for damage caused by flooding within your premises. Flood cover can only be included as a peril within your policy if Storm and Tempest is also included.
Flood insurance will cover the cost of repair and replacement of items damaged by the excess water. The policy excludes damage caused by a fire because any fire that broke out as a direct result of a flood would be covered under a fire policy.
A flood policy does not cover the consequential losses incurred as a result of any interruption caused to your business. Only by taking out business interruption cover can you safeguard against these potentially enormous losses.
What having Flood cover means to you
Should your property be affected by flooding you will be protected from direct financial losses that result.