Small firms facing big pay-outs due to severe flooding

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The Federation of Small Businesses (FSB) has raised concerns regarding the costs that small firms may suffer in wake of the heavy flooding in the UK.

The FSB has stated that small firms need insurance protection against flooding, and it is worried that many businesses in high-risk flood areas cannot get adequate insurance cover and will have to pay out themselves to repair damage.

It believes that further investment in flood defences would make it easier for businesses to get insurance, and therefore would protect them against the cost of repair.

In a message to the Government, the FSB urges that it does more to protect small firms in areas at high risk of flooding.

It also proposes that the Government should work closely with the Environment Agency on flood defences and in the immediate term it should reach a resolution with the insurance industry.

Speaking from York where he is visiting an FSB member and other businesses affected, John Walker, National Chairman, Federation of Small Businesses, said:

“It is unacceptable that small firms are paying out what could amount to tens of thousands of pounds because they can’t get adequate insurance protection from their insurers. Nor is it acceptable that flood defences aren’t robust enough to withstand the rain.

“The money these firms are paying out could be being used to grow their business or take on more staff. Instead they have to pay themselves to repair the damage. This can’t carry on year-after-year, so the Government and insurance industry must reach a decision on the universal cover as soon as possible.

“For those firms that have cover and have been affected, their insurers should pay out quickly to ensure the business can start trading again.”

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