UK body urges firms to buy adequate flood coverage

The current flooding in the north of England underlines the need for businesses to buy insurance that is fit for purpose, according to Airmic, the UK association for risk and insurance management professionals.

The association said that businesses need to make sure their insurance cover also provides support for effective crisis planning.

Airmic said that although news coverage has concentrated mainly on the devastating impact on households and small businesses large companies have also been hit by the floodwaters. This is especially the case now that cities like York and Leeds are affected, said the association.

“It is at times like this that you find out if your insurance and your contingency planning are fit for purpose,” said John Hurrell, chief executive officer, Airmic.

“Sadly, we know from experience that some policyholders will be disappointed when they come to make their claims, and that many will not be fully covered.

“We also know that the insurance industry and their reinsurers will rise to the challenge and do a great job, as they always do when there have been disasters. We would urge them to be flexible and pragmatic, and to look favourably on customers who have bought cover in good faith - especially small businesses that might not have absorbed all the implications of the small print.”