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30 December 2015

FSB calls for help for smaller firms to access affordable flood insurance

Despite the water, many small firms have been resilient during the current floods crisis and managed to stay open and support their local communities. FSB is grateful to those that have protected businesses, and that are now helping them get back on their feet.

John Allan, National Chairman for the Federation of Small Businesses, said:

“FSB research published in July 2015 demonstrated that many smaller firms struggle to access affordable flood insurance, with nine per cent in flood risk areas reporting difficulties and six per cent reporting that they have been refused cover. This equates to around 75,000 smaller businesses across the UK facing difficulties in finding affordable insurance and 50,000 being refused.”

“This is a longstanding issue. As Ministers and the insurance industry plan to bring in a new Flood Re scheme to back those refused cover, FSB has expressed its deep concern to Ministers and the insurance industry that the smallest businesses will now be excluded. Much like households, micro-businesses are those least able to negotiate competitive insurance. When the new scheme is introduced in April 2016, FSB now calls for the smallest businesses to be included.”