Commercial Flood Insurance

For High-Quality Commercial Flood Insurance, 01684 218618 or Email Us at [email protected]

Flooding has caused unprecedented damage and stress to business owners across the country in recent years. Businesses in high-risk areas have been denied commercial flood insurance in the past, leaving them vulnerable to a situation out of their control in the event that flood risk insurance is required.

We are proud to offer a completely new type of flood insurance, which is only provided by a small number of flood risk insurance brokers.

Commercial flood insurance is designed to offer financial protection to businesses affected by severe flooding. This coverage provides a financial safeguard for properties, assists in mitigating trading interruptions, and compensates for any damage to the business’s contents.

It has been observed that numerous small and medium-sized enterprises face significant challenges in securing the necessary flood insurance coverage. This difficulty often arises due to their location in flood-prone areas or a history of previous flooding incidents.

We view this disparity as unjust and acknowledge the crucial role played by the British Insurance Brokers’ Association (BIBA) in pioneering a revolutionary scheme for commercial flood insurance. Our stance is clear: we advocate for the availability of flood insurance that is tailored and risk-assessed to meet the unique needs of each business and property owner, irrespective of their geographical location.

What’s the difference between Commercial and Residential Flood Insurance

While these two flood insurance policies may seem the same, residential flood insurance and business flood insurance policy’s are significantly different.

Commercial flooding insurance is designed to protect a business, it’s building, contents and assets whereas residential flooding insurance is especially for homeowners or renters that are looking to cover their home and personal belongings. As a result, coverage limits for both policy types will differ.

Generally, businesses premises will have a higher property value and more assets to cover compared to a what is kept in a home.  A residential flood policy does not include business interruption coverage, nor is there is any consideration for specialised equipment or a large inventory of products that need their own coverage in the event of a flood. Residential flood insurance policy can be optional, whereas a business flood policy could be required by landlords or councils in flood prone locations.

Who would benefit from Commercial Flood Insurance

  • Retail Businesses: Stores and shops located in flood-prone areas need coverage to protect their inventory and premises.
  • Manufacturing Facilities: Factories and industrial units rely on this insurance to cover expensive machinery and equipment.
  • Real Estate Owners: Commercial property owners, including landlords of office buildings, apartments, and commercial complexes, need this insurance to safeguard their investment.
  • Hospitality Venues: Hotels, restaurants, and entertainment venues situated near water bodies or in low-lying areas benefit from flood insurance to protect their property and business continuity.
  • Agricultural Enterprises: Farms and agricultural businesses can use flood insurance to cover crop damage, livestock loss, and damage to farm equipment and buildings.
  • Construction Sites: Construction and development projects often have significant exposure to flood risks, making flood insurance crucial for protecting materials, equipment, and unfinished structures.
  • Educational Institutions: Schools, colleges, and universities, especially those in flood-prone zones, require insurance to cover buildings, equipment, and learning materials.
  • Healthcare Facilities: Hospitals, clinics, and care homes need flood insurance to protect their facilities, medical equipment, and the continuity of care they provide.
  • Non-Profit Organizations: Charities, churches, and community centers located in areas at risk of flooding benefit from flood insurance to protect their assets and ensure they can continue serving their communities.
  • Home-Based Businesses: Small enterprises operating from the owner’s home can also benefit from commercial flood insurance if their standard homeowners policy does not cover business-related flood damages.

How Does Commercial Flooding Insurance Work with Denovo?

At Denovo, our commercial flooding insurance policy is linked to a mobile-connected sensor installed at the business premises. The sensor then will alert to any flooding.

When the agreed trigger-depth is reached, the sensor is alerted. This alert will trigger the Denovo Risk Solutions Team to start the claims process – no documents required.

The sensor we include in our commercial flooding policy is an important part of Denovo’s business flooding insurance, so it is designed to last.

  • Accurate depth measurement using sound waves
  • Battery lasts 7-12 years
  • Connects to the internet to share current flood information
  • Has a memory chip to save data if networks go down
  • Resistant to tampering and storms
  • Quick and easy to install

What does our policy cover?

Who is covered by insurance

In the past, covering a business with commercial flood insurance meant you deal with lots of paperwork and provide evidence to make a claim.  It can be near impossible to find coverage for areas at risk of flooding, like coastal or river areas. However, at De Novo Risk Solutions, we are one of the few insurance brokers in the UK offering a completely new type of business flood insurance. This insurance, authorised and regulated through BIBA, removes the usual uncertainties and time-consuming processes associated with traditional policies.

What is covered by the insurance

Our business flood risk insurance payout does not come with conditions – it includes:

  • Covering losses from business interruption
  • Replacing damaged stock
  • Repair costs

The premium can be customised by adjusting the ‘trigger’ depths and payment amount – there is room for 5 trigger depths, which offer further payouts if the flood level rises.

Unlike other flooding insurance policies, we remove the problem of ‘dual insurance’. This means businesses can buy flood insurance coverage in addition to an existing building insurance policy, to help with the large excess.

Alternatively, this could be used to replace the flood element of your company’s business insurance cover and reduce the overall premium.

At Denovo Risk Solutions, we are proud to be part of the Benefact Group, a charity-owned, international family of specialist financial services companies that give all available profits to charities and good causes. The Benefact Group is the 3rd largest corporate donator and the no.1 insurer of listed buildings in the UK.

Manufacturing Client
Manufacturing ClientMirfield
“Oxera’s last insurance experience was not a positive one. Their 2015 claim took over 7 months and threats to complain to the ombudsman before it was paid. Fortunately they had some cash reserves that allowed the business to carry on during the wait. With lots of product on the warehouse floor and plans to expand the business, it was key that they secured insurance. They chose trigger depths to complement their flood gates in order to keep their premiums down. When water breached the flood gates during Storm Ciara, they received their FloodFlash payout in a single day.”

How much does commercial flood insurance cost?

Insurance costs are affected by different factors.

The reason why parametric insurance is affordable compared to traditional insurance is down to the costs and uncertainty associated with each policy. The costs are greater in traditional insurance because they need to pay loss adjusters, claims teams, legal or other costs. Similarly, traditional insurers are more exposed to uncertainty when a flood occurs. They can’t predict the exact damage caused by a flood because of all the variables so their final bill is unknown – and they deal with this uncertainty by charging more premium or refusing to cover flood.

We agree a set payout for when a flood occurs which we measure using our sensor, so we don’t have the costs and uncertainty mentioned above.

This means that our premiums can be significantly lower than traditional providers.

There are various factors to consider.

  • Factors like:
    • Type of business/operations
    • Location of premises 
    • Value of stock / security measures in place
    • Age
    • Payment frequency – monthly/yearly
    • Claims history

The maximum payout that we offer with an instant quote is up to £5,000,000 per location. If you are in a particularly high risk area, however, we may not be able to offer the full amount.

If you require additional cover, get in touch as there is a good chance we can help after referring through to our underwriters.

Payout Considerations

You should pick a payout amount that makes sense for your business. It can be useful to discuss this with us or a surveyor, otherwise here are some things that you might consider:

The cost of repairing property and replacing damaged stock, machinery, and contents after a flood varies widely.

The terms and limits of any existing flood insurance you might have – for example your existing insurance might have a very large excess (sometimes called a deductible) for flood damages, or the level of cover provided might be insufficient for your needs.

The payout from the policy can be spent on whatever you need, so make sure to consider any direct or indirect costs that may be specific to your business or property.

Our business flood insurance offers an innovative combination of technology and simplicity. The cover is based on a straightforward set of steps, agreed with you in order to achieve the perfect cover for your business or rental

Depth – you select the depth of water that would cause flood damage

Payout – you select the amount of money you would receive if the water reaches the agreed depth

Sensor – an electronic sensor is installed on the outside of your building (it looks like a drainpipe so shouldn’t cause any aesthetic impact)

Trigger – if flood water reaches the selected ‘trigger’ depth, the sensor transmits a message and payment is arranged

We are proud to offer this essential flood risk insurance, which is based on a pre-agreed target depth of floodwater. That means there is no need for customers to spend hours answering questions and going through policy documents. You get the protection you need immediately – avoiding the panic, delays, and paperwork that have accompanied commercial flood insurance claims in the past.

Still unsure? Speak to our experts

Review your current insurable and non-insurable risks

Identify the robustness and adequacy of your current insurance cover against the risks identified, recommending areas for improvement if required

Undertake a comprehensive policy wording review to ensure the policies in place are aligned to your risk profile and operation

Provide feedback on your current premium levels in comparison to those of similar organisations within your sector

Create an action plan to protect you against future risks and/or uninsured exposures

How can I make a claim?

If your sensor detects a flood at the trigger depth you have selected, we will notify you by email to confirm that you have been affected. We then process the data from your sensor in order to validate and pay your claim as soon as possible. There is no need for a visit from a loss adjuster or other damage calculation, allowing you to concentrate on managing your recovery.

A significant benefit of the policy is intended to let you recover from a flood as quickly as possible, and there are no restrictions on how you spend the payout. It could be used to cover immediate costs such as bills and wages, and to reduce the impact of business interruption, or to cover the costs of damage to property, contents or stock.