…

Parametric flood insurance

Why do you need parametric flood insurance?

It’s an unfortunate statistic that 40% of businesses don’t reopen after suffering a catastrophic loss from flooding.1 Finalising insurance claims can prove a slow process, sometimes taking months before claims are resolved following a disaster.

In some cases, businesses can also find it extremely difficult to obtain flood insurance due to previous claims or being in high-risk areas undesirable to insurers. Those businesses that can find cover often end up paying higher premiums or excesses.

FloodFlash can provide reassurance that, not only are you more likely to obtain cover at a reasonable cost, but your claim will be paid fast – often within 48 hours of the flood. Enabling you to recover quickly and get back to what’s important - running your business.

  • Fast
    FloodFlash pays out the full value of the settlement within days of confirming a flood, enabling you to recover quickly.
  • Easy
    FloodFlash claims are easy to administer. Floodflash will just confirm the flood and pay out the agreed amount.
  • Flexible
    Control your trigger depths and pay-out values, or even make your premium cheaper by raising stock or installing flood defences.

How our insurance experts can help

Whether you struggle to get cover, have a large excess or just want a top-up to your existing policy, we can help you to protect your business or commercial property.

1. https://rainbow-int-franchise.co.uk/flooding-statistics-uk/

How does it work?

The policy uses triggers (or parameters, hence parametric) rather than the process of indemnity from traditional insurance. When the trigger is reached, the settlement is paid out.
A typical process looks like this:

  1. Select – a client discusses their requirement for flood insurance with their broker. Together, they select the depth of flooding they wish to insure against, and the pay-out they would need in the event of a flood.
  2. Measure – a sensor is installed to measure flood depth at the insured property.
  3. Settle – when the sensor records a flood depth selected in stage 1, the pre-agreed pay-out is made to the client.

Are there any restrictions?

Whilst the FloodFlash product is a viable option for many businesses in need of flood insurance, there are some restrictions to be aware of:

  • The minimum depth sensors can be placed is 20cm (or 40cm for properties close to a source of flooding). Depth is measured from ground level. It can take into account steps up to a property or where part of the wall is lower than the doorway height. For more guidance, contact a Marsh Commercial expert.
  • The sensor cannot be placed on a wall that abuts water, or down a drain, steps, or in any depression that brings it below ground level.
  • The minimum pay-out amount is £5,000.

Need more convincing? 

Why not see what one of our Marsh Commercial clients’ thinks of Floodflash here.