August 17, 2007—The not-for-profit British Insurance Brokers’ Association (BIBA) is urging all businesses to check their insurance policies and to ensure they have a full business continuity plan in place ahead of predicted severe weather conditions. BIBA warns that without suitable cover, natural events can result in business being interrupted or a company even shutting down.
BIBA research shows that nearly half of all UK businesses have no plans to deal with the impact of flooding, a third have no plans to deal with the results of a storm, just over a half have plans to deal with the effects of a fire, and nearly three quarters have no plans for dealing with the impact of acts of terrorism. In addition, only half have a formal written Business Continuity plan in place, and half of those questioned believed it would take less than a day for a serious disruption or disaster to have a significant impact on their business.
BIBA’s Top Tips include:
- Ensure that you have adequate cover—contact a broker (BIBA has a “Find a Broker” page);
- Check that your cover is still current;
- Know who to call if disaster strikes—most brokers and insurers have a help line;
- Keep property maintenance up to date, ensuring it is maintained to a good standard at all times—if not, your claim may be prejudiced;
- Check that you have the correct Sums Insured for your building and contents; otherwise your claim payout could be reduced;
- Check that you are getting a competitive excess and that you can afford to pay it if something does happen;
- If you believe your property is at high risk from flooding, contact your insurance broker as soon as possible, as they can often offer advice to help you reduce the possibility of the damage getting any worse;
- Move as many things as possible to higher levels in the building as soon as you hear the flood alert;
- Electricity and gas should be switched off and mains drinking water should not be consumed as it may have become contaminated—wait until the green light is given before using any of these utilities;
- Pull furniture away from walls to prevent further damage; and
- Keep a copy of important telephone numbers and policy documents in a safe and easy-to-find place; and
- Consider fitting specialized physical defenses such as air brick covers and window defenses, in addition to sand bags.
Those in the UK can call the 24-hour Environment Agency floodline at 0845 988 1188 for information on flooding in their area.
