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Small businesses left to fend for themselves by new flood insurance regulations

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The Federation of Small Businesses (FSB) is seriously concerned by the exclusion of businesses from the Government’s flood insurance programme, Flood RE. New draft regulations laid before Parliament yesterday included provisions for domestic properties but Ministers have decided to exclude small firms.

Gordon Millward, regional chairman for the Federation of Small Businesses, said: “The Flood RE draft regulations cause fresh uncertainty for the one in ten (nine per cent) small businesses at risk of flooding. Many small firms are already finding it difficult to find flooding insurance with as many as 50,000 businesses potentially affected.

“Three per cent of these small businesses currently say flood insurance is unaffordable. Without being included in Flood RE there is nothing in place to protect the smallest of businesses, which are the most vulnerable.

“With potentially no provision through the open market, firms will now have nowhere to turn and so will be at risk.  Ministers should look again at the availability of affordable and comprehensive flood insurance for small businesses, potentially through a dedicated Flood Re style agreement.

“The financial cost to small businesses following the 2012 flooding was £200 million. We cannot hope to create a buoyant economy if vulnerable small businesses are not sufficiently protected from unpredictable and severe weather that in the worst cases can close a business.”

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