Biba develops flood product for SMEs

The British Insurance Brokers Association has added to its commercial flood insurance scheme and now provides cover for businesses with less than £1m in assets.

The product, created alongside Mi Commercial Risks, provides flood only cover for either a £25k or £50k limit, in the aggregate in the period of insurance.

The product is designed to be bought alongside a standard commercial package policy to provide some flood cover if there is a gap.

Aimed at small businesses such as restaurants, shops, hairdressers and other SMEs, it covers flood damage plus additional costs including replacement of property, clean up, moving to or from additional premises, along with securing the premises, defending against further flood damage and additional staff costs.

There is a simple fast-track claims process with the policyholder being in control of how they best use the funds to get their business up and running again, Biba detailed.

Mike Hallam, Biba head of technical services commented: “Members have asked for this product and smaller businesses want it too so it’s all-round good news. Our existing flood scheme has proved valuable to members but now it aims to offer cover for all types of clients whether through the main scheme or this new extension.”

James Wheddon, managing director, Mi commercial Risks, added: “Supporting Biba on this important scheme by creating a product that matches the needs of SMEs and their brokers who were previously struggling to find cover is a demonstration of Mi Commercial Risks innovative approach. The product is supported by London Market and Lloyd’s A rated capacity and is available alongside flood excess buyback cover.”

Directory

Last year Biba collaborated with Flood Re and the Association of British Insurers to develop a directory of specialist flood insurance providers that people may use to find cover.

The organisations’ initiative followed the government’s Independent Review of Flood Insurance in Doncaster. The report, which was published in November 2020 and led by Amanda Blanc, recommended a means of providing easier access to “suitable and affordable” insurance products to help those living in flood-prone areas.

Following Blanc’s review and working closely with the Department for Environment, Food and Rural Affairs, Biba, the ABI, and Flood Re began a signposting project to enable better access to insurance.

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