The Federation of Small Businesses (FSB) is urging business owners to check they have the right insurance in place after research revealed many firms weren’t adequately covered to deal with the aftermath of extreme weather.

The study showed that the majority of small businesses (59%) don’t have a flood plan in place and 29% don’t have business interruption insurance, leaving room for vulnerability and possible ruin if a business is out of action due to damage caused by flooding or other freak weather.

While buildings insurance is designed to cover the costs of repairs, business interruption cover is vital in providing financial aid to cover the loss of income suffered while your shop or office is closed due to unforeseen circumstances.

Around 66% of small businesses are believed to have been affected by flooding in the past three years, causing considerable disruption with staff, customers, suppliers, utilities and transport.

Does your small business insurance cover you for interruption in the aftermath of flooding?

With 3200 commercial properties flooded in the UK last year and extreme weather on the increase, Mike Cherry, National Policy Chairman for the FSB, is calling on small businesses to be prepared.

He said: “Small businesses need to get better prepared for extreme weather. We remain concerned that small businesses will not be included in the Government’s Flood Re agreement, designed to limit insurance costs for those at most risk of flooding.

“Firms need to be reassured that affordable flood insurance will be available in the future. Currently three in 10 (29%) do not have the right cover in place.”

Are you unsure how to prepare for flooding and the aftermath? Mr Cherry pointed business owners to the Environment Agency’s extreme weather plan guidance, while we here at The Insurance Octopus have created a handy infographic for how to protect your business premises from severe weather.

Contact an expert consultant at The Insurance Octopus today to check your business is adequately covered for risks associated with flooding and other extreme weather damages.