From 1 July, hard-copy leaflets giving advice on how to mitigate the risk of flooding will be sent to the majority of Aviva commercial customers with their renewal documents. The leaflet can also be downloaded by brokers from Aviva's website at http://broker.aviva.co.uk/.
The UK's largest insurer uses a sophisticated flood-prediction model to assess the level of risk a particular property may face and ensure that premiums reflect the flood risk to the individual property, rather than it being rated against a less accurate post code.
Ian Shelley, technical manager (property) at Aviva, said: "Helping our customers to better understand the risk posed by flooding to their business, and the measures which can be taken to reduce them, is vitally important to us.
"While it may not be possible to eliminate the risk of flooding altogether, many practical steps can be taken to reduce the risk of flood damage, particularly if a business is in a high risk area."
According to the ABI, at least 2.5 million properties in England and Wales are at risk of flooding from rivers or the sea - and more than one million of these are also at risk of surface water flooding. A further three million properties are susceptible to surface water flooding.
With the effects of climate change likely to increase flood risk in the UK even further, brokers should be advising their clients to be aware of this risk and taking the necessary steps.
Shelley continued: "Our flood advice leaflets will give commercial clients general guidance on flood issues and also keep the threat front of mind. Although flooding may not seem an immediate threat, all businesses should be acting to mitigate the risks. It is always wise to prepare for the worst rather than wait until it is too late - the floods in Cumbria last year show how devastating they can be."
Advice in the leaflet ranges from subscribing to flood alert warnings and investing in local property flood protection devices, to moving expensive equipment to less vulnerable parts of the premises. Businesses are also urged to incorporate specific flood contingency elements in business continuity plans to minimise disruption and improve speed of recovery.
At an industry-wide level, Aviva is working with the ABI to review its statement of principles on floods and put pressure on the Government to maintain funding for flood defences going forward.
