The UK, like many places in the world, is now experiencing more adverse weather. Flooding is now becoming more frequent and affecting more businesses.
Experiencing a flood in your business premises can be devastating and you will need to get your business up and running as soon as possible.
This blog gives you practical guidance on steps that business owners can take when flooding occurs.
The importance of business continuity planning
If your premises are at risk of flooding, then you should have a clear business continuity plan in place. If you don’t have a plan, then consider the three stages of continuity and recovery planning here:
Emergency response - procedures that need to be put in place at the time an incident occurs, this may be merely how to evacuate a building dealing with a major accident.
Crisis management - this happens directly after the incident relating to things such as an assessment of damage, recovery options, liaising with key people such as insurance brokers, builders, etc.
Business recovery – longer-term details of how you recover including processes and potential timescales.
Read more about the importance of a business continuity plan here.
Advice to follow during a flood
If the worst happens, it’s essential to make sure that everyone at your business premises is safe.
- Only authorised people should enter the premises until it's safe.
- Make sure your employees have a safe location where they can evacuate in good time.
- Let any staff who are not at the site know what’s happening.
- Don’t try to walk or drive through water – six inches of fast-flowing water can knock you off your feet and one foot of water can float a car. Manhole covers may have come off or there may be other hazards you can’t see.
- Avoid contact with flood water as it may be contaminated with sewage.
- Follow the advice of the emergency services.
Advice to follow after a flood has occurred
1. Ensuring the premises and staff are safe and secure
Before entering the premises assess the damage and make sure the building is safe by following the steps below:
- Examine your building’s structure and inspect your property externally for immediate dangers or damage.
- Secure any unsafe areas with caution tape and keep these areas cordoned off until a determination is made regarding safety.
- Based on your review of the property, you may need to contact emergency services such as the fire service and utility companies.
- If access to your building is possible, start from outer structure(s) and take photos as you go.
- Ensure only authorised people enter the premises until it's safe.
- Make sure your employees have a safe evacuation location.
- Notify staff that are not on-site, so they know what’s happening.
- Avoid walking or driving through water. Remember only a few inches of fast-flowing water can knock people over and a foot of water can float a car. There may also be obstacles and hazards underwater that you can’t see such as loose equipment, or manhole covers etc.
- Avoid contact with flood water wherever possible as it may be contaminated with sewage.
- Follow the advice of the emergency services.
- Electricity and gas supplies may need to be turned off to ensure you and your employees are not in danger.
2. Contact your broker or insurer
If you use an insurance broker, such as Harborough Portas, you should contact them as soon as possible after the flood occurs.
A broker can advise you about what to do next including evidence you will need to support your claim, such as photos, loss of potential income and invoices etc.
Your broker can talk to your insurer on your behalf and advise on what your business is covered for depending on the damage caused by the flood. If the damage is widespread, then things like alternative premises or business continuation may need to be considered.
3. Assessing the damage
If stock and equipment and the fabric of the building has been damaged, your broker or insurer may need to organise someone to help you assess the overall damage.
A loss adjuster will be appointed to assess the claim. An initial assessment of the damage will be done, and the reinstatement process and other options explained.
4. Gather evidence
It’s worth gathering evidence of the damage and beginning to collate other documents you may need for the insurer. Photos of the damage caused, the reason for the flood, and potentially copies of your accounts if your insurer will make interim payments to help with cash flow and any interruption the flood may cause.
5. Cleaning and stripping out
Cleaning and stripping out of the premises should be organised in conjunction with your loss adjuster and/or insurer and should take place in the weeks after the flood.
6. Disinfecting and drying out
Your loss adjuster will be there to assist you with the recovery process. They should appoint a drying company to disinfect and fully dry out the building. Depending on the extent of the damage, this could take a few weeks to several months. A certificate should be issued by the drying out company once the work is complete.
7. Getting back to business and trading
Talk to your insurance broker or insurer about appointing builders to undertake repairs, replacement and upgrading any damaged equipment. Once you have the drying out certificate, repair and building work can commence.
8. Moving back into your business premises
Your insurer or loss adjuster will assess and notify you when it is safe for you and your employees to return the damaged building or sections of the building.
Business interruption insurance
Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event. For example, if your business suffers material damage from things like fire or flood and your business is unlikely to be able to operate for some time.
You can choose the length of time your policy will pay out (also known as the indemnity period). This will depend on how long you think it will take to get your business running again.
Having the right amount of cover to get your business operating fully again will involve working out the sum insured and the right indemnity period.
Business interruption insurance will cover you for things like:
- Loss of profits that would have been earned had the event not occurred as well as fixed costs such as operating expenses and other incurred business costs.
- Cost of employee wages over the period the business is out of operation.
- Interruption of, or interference caused by, the failure of the public supply of electricity, gas, water, or communication services.
- Interruption caused by certain contagious diseases on your premises.
- Interruption caused by the discovery of death at your premises.
- Reasonable charges payable by you to your professional advisors.
- Interruption to trade due to interference on your supply chain (e.g. your suppliers’ premises suffers a fire or a break in).
Check your policy or speak to an insurance broker such as Harborough Portas to find out what is covered and the best policy for your business.
For more help and advice on flooding, contact Harborough Portas today by calling 0116 260 0506 or email mail@harboroughportas.com.
