The impact of flooding on small businesses and how they can protect themselves

22nd April 2022

Flood advice for small businesses

The impact of flooding on small businesses and how they can protect themselves

A recent report by FloodFlash has highlighted the significant impact flooding can have on a small business’ profitability and even survival.  The report follows the major storms Dudley, Eunice, and Franklin.

The report found that 40% of small businesses close for good after catastrophic loss from flooding, and one in four of those who have been flooded in the past 10 years reported experiencing a prolonged period of business interruption.

The top three sectors at risk are retail at 32.5%, manufacturing, wholesaling, and logistics at 20.7%, and office buildings at 11.1%. Despite this, only 58 of retail businesses surveyed agreed that they had comprehensive insurance.  Manufacturing businesses were better covered, with 76% agreeing they had comprehensive insurance.

FloodFlash uses advanced risk-modeling and mobile-connected sensors to remove the costs, time and uncertainty associated with traditional flood insurance.

Jamie Harvey, a Director of IFM Insurance Brokers said: “This report once again highlights that the risks to small firms of flooding can be severe.  Sadly, this situation is unlikely to improve due to urbanisation, increased frequency of extreme weather and climate change.  However FloodFlash offers SMEs piece of mind through an innovative, technology-led solution, enabling them to obtain flood insurance in high-risk areas”.