SMEs denied Flood Re support


Small to medium enterprises (SMEs) will not be covered for flood damage under the government’s Flood Re plan.

A consultation on insurance in flood risk areas of the UK closed on August 8th, receiving 149 responses.

Some respondents said that they believed businesses were in a better position than homeowners to take action to reduce the risk of flooding and that the number of SMEs in those areas was reasonably low.

Other feedback received included the opinion that some businesses would struggle to obtain affordable insurance in areas hit by high waters.

Following the consultation, the Department for Environmental, Food and Rural Affairs (Defra) issued a statement, which said: “We remain of the view that overall there is insufficient evidence to justify government intervention in the provision of insurance cover for small businesses.”

However, Defra added that it recognised “the difficult challenges that some small businesses could face in areas of high flood risk”.

Posted by the Secret Businessman