The UK’s recent floods cost small businesses in the affected areas an average of £1531 each in terms of increased operating costs, and lost man hours, business and productivity, according to data from the Federation of Small Businesses (FSB). The data was compiled from an online poll of members of FSB’s Voice of Small Business Panel in potential flood-hit areas.
Key data
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42% did not have business insurance that covered flooding. |
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32% suffered from reduced demand for goods and services and 29% say that the movement of goods and supplies was hindered by the floods. |
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10% had to close or stop trading temporarily. |
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37% expect it to be more difficult to renew their insurance. |
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59% expect the cost of insurance for their business to increase. |
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5% say the floods had a positive impact on their business. |
Additional facts
- Of the companies that did not have flood insurance, 51% said it was because they had never needed it in the past.
- Additional problems caused by the floods included staff absences, disrupted communications and temporary loss of utilities.
- The overall cost of flooding of small businesses in the affected areas has been estimated at £831 million.
- The majority of respondents were not aware of the Flood Re scheme, which was introduced by the UK government in 2013.
- The FSB has called on the Government and the insurance industry to look again at the support they have in place for small businesses in flood-hit areas to assess whether more can be done to facilitate access to acceptable and affordable insurance.
The online poll was carried out by 854 members of FSB’s Voice of Small Business Panel. Of these, 28% operate in an area considered to be at risk of flooding, or in an area that has flooded in the past 5 years. More details about the survey and its results are available here.
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