Turn the tide: how to address flood risks and mitigate their impact on your business
As we approach storm season and almost one year since Storm Ciaran battered the Islands, we wanted to share a series of articles that provide great guidance on how businesses can prepare and protect themselves from weather-related events.
There are few things as unpredictable as our weather. In recent years, flooding has become a growing concern across the UK and Crown Dependencies, with incidents occurring more frequently. Only last week, lightning and flash floods hit the north of Jersey, causing flooding in several areas, affecting properties and making road conditions difficult.
For businesses, it is vital that they have a strategy in place before and after a flood occurs. To help recover, minimise damage and ensure they can continue, requires a flood management plan alongside a number of proactive measures.
Climate change can hamper flood forecasting and preparedness, resulting in potentially obsolete flood zones that compound the problem. As a result, many businesses remain unprepared for the severe damage and disruption that such events can cause.
Be proactive and prepared
There are key considerations in drawing up a flood management plan.
The business continuity plan and checklist for crisis communications – such as listing important phone numbers – should be maintained and updated. Protect critical paperwork, insurance policies, bank account details, computer data, along with site maps. Records should also be kept away from the premises at an alternative location
For staff, businesses need to assemble an emergency response team with key roles assigned to each member. An internal communication strategy is developed and staff kept up to date with current information and guidance, ensuring they know what their responsibilities are.
Businesses are also advised to sign up for flood warnings via their government’s website and monitor the situation through the local media.
When flooding occurs
If flooding is imminent, a number of steps that can be taken.
Businesses should prioritise all staff and visitors safely exiting the premises if conditions allow. Should evacuation not be possible, guide employees to the highest accessible point to facilitate rescue efforts, giving priority to those requiring the most assistance.
It is important to move or remove anything that is critical to the business, such as computer equipment, servers and smartphones, along with items on the emergency kit list, so torches, radios, additional chargers, power banks, fully stocked first aid, clothing, water and food.
Windows and doors should be secured throughout the building; gas, electricity and water supplies turned off and as many items as possible safeguarded including files, keys and any cash.
After a flood
Premises must be cordoned off with tape until safety is determined and secured to prevent further damage or loss. Areas with flooded electrical circuits and appliances are to be avoided until the power has been cut off and business owners vigilant of leaking gas pipes, electricity cables, or flammable materials such as fuel.
Businesses should then compile and submit a claim form promptly to their insurance broker, including as much photographic evidence as possible.
Long term flood planning
If a business has experienced flooding before, it is likely to be at risk of future flood events. The period immediately following is an ideal time, as the issues are probably still top of mind.
The flood plan should be reviewed and updated by identifying areas for improvement and making necessary updates. This includes revisiting the insurance policy to check that the business interruption policy is sufficient to cover another event and also carry out necessary mitigation measures as outlined by the broker or insurer.
The business continuity plan should be reassessed to ensure it is adequate for any future events, including supply chain resilience.
Practical considerations include replacing any downstairs carpets with sealed wood or ceramic tiles, fit flood skirts, raise electrical sockets as high up walls as possible and replace and restock items on the disaster supply list.
Finally, the businesses should prepare to make a flood claim.
A commercial flood claim
In order to provide an insurer with sufficient information, a preliminary damage report with photographs should be prepared, together with an inventory of interior and exterior assets.
Separate and catalogue damaged items and any stock from those that are unaffected.
The property should be secured to minimise further damage or loss.
Services offered
Insurers are generally well versed in supporting policyholders.
Gallagher, one of the largest insurance broking groups in the world, provides a wide range of products, including a risk management service, flood inspection, reporting and surveys.
Not only can we help reduce a customer’s flood risk but we can assist in negotiating terms to find a suitable solution to meet the needs of a business. Another area of expertise is supporting with business continuity planning.
If customers need any advice or help at a local level, they are asked to get in touch and one of our team will be able to assist.
Contact us
For Personal or Commercial Insurance use the following contact details to speak to the team closest to you.
Jersey: 01534 500500 (Monday to Friday 9 - 5)
Guernsey and Alderney: 01481 241555 (Monday to Friday 9 - 5)
Isle of Man: 01624 631631 (Monday to Friday 9 - 5)