The UK's economic impact of today's flooding is estimated to be £50m
As well as the significant personal cost which are the result of the widespread flooding seen over the past 24-hours, businesses across the country will also be bearing the brunt of the devastating weather conditions.
Maurice Fitzpatrick, business analyst, at Grant Thornton's said: "The economic cost to UK businesses as a result from the flood disruption for the 24-hour period to Tuesday 26 June is estimated at £50 million. This does not take into account yesterday's damage, nor future damage and it excludes the physical cost of damage (much of which will be the subject of insurance claims)."
Angus Tucker, director of insurance claims solutions within Grant Thornton's Forensic and Investigation Services practice said: "While many businesses in the area will be covered by 'physical damage' and 'business interruption' policies for damage from today's flooding, further problems will arrive if business owners are denied access to their premises by local authorities (i.e. Police/Fire) and therefore cannot trade. To be covered by such an eventuality, business owners are required to have purchased a far more complex and lesser known cover which is 'denial of access'.
"The key message to businesses is to look beyond the basic insurance offerings and to consider the effect of supplementary risks which they may face. As flooding has become more widespread in recent years, insurers have been increasing excess levels and businesses may find themselves footing a significant portion of the bill before they are covered by their policy.
"However, the final nail in the coffin for many companies within flood-prone areas will be that they find it increasingly harder to even purchase flood cover on their policies in the future, as insurers have become wary of constantly paying out claims for events which they are now coming to regard as inevitable".
