Insurers challenged to support small business flood resilience effort

FSB Regional Chairman, Simon Edmondson

MPs have called for more support for small businesses unable to secure affordable flood insurance, in a new Environment Food and Rural Affairs Committee report.

The Committee is right to highlight the problem faced by a small but significant number of small firms in accessing affordable flood insurance. It recommends the Government develops a grant scheme by the end of 2017 to help small businesses install flood resilience measures. It also proposes a review of this scheme in 2019 to assess whether there is a need for a Government backed insurance offering for small businesses.

Simon Edmondson, Regional Chairman of the Federation of Small Businesses (FSB) in Greater Manchester, said: “As winter approaches there will be many businesses across Greater Manchester with very fresh memories about the floods we saw last Christmas, and will be feeling very concerned about repeat weather. Many of those affected last year will now no longer have cover, and it’s urgent we find a solution for small firms who currently struggle to find affordable flood insurance. They shouldn't be forgotten about.

“A government grant scheme would go part of the way towards empowering small businesses to protect themselves from the growing risk of flooding. But ultimately, the insurance industry needs to find a way to provide affordable cover to those who need it most.

"We also want to see insurance premiums reduced for firms who invest in flood resilience measures. Businesses want to be empowered to help themselves. They are the lynchpins of their local communities but will increasingly struggle to provide that service as climate change leads to increasing flood risk. If they continue to be locked out of the insurance market, these businesses will close or move elsewhere, causing community flood blight.”