Aon Advises Flooded Businesses

by Gill Montia

Story link: Aon Advises Flooded Businesses

Aon is advising businesses affected by the recent floods to check their policies to see if they provide interim payments for repairs and loss of revenue. Some claimants may have to wait months before their insurance claims are settled and this can be a major frustration for businesses, particularly where loss of revenue is involved. If interim payments are included in the cover, companies can negotiate these to help when cash flow is most needed.

Aon has already received claims for over £1m in connection with the recent floods and believes that a large number of commercial properties has been affected. Whilst most commercial policies will cover flood damage, claims take time to settle because it is only after a property has dried out that the total damage can be identified. Those claiming for damage to a warehouse need to be aware of any flood-related exclusion in their policy, such as a requirement for stock to be stored at a certain level above the ground.

As weather patterns seem to become increasingly unpredictable, Aon is also recommending that businesses spend time on their crisis management and business continuity strategies.