Floods: Fears over long-term impact on insurance cover

Flood-affected licensees are desperately scanning their insurance policies in the wake of the disaster.

It is expected that most pubs will be covered for damage. But it is less clear whether all will be able to claim for loss of earnings and fears remain over the long-term impact the floods will have on the cost of cover.

Most tenants and lessees of major pubcos should also be able to breathe easily over insurance.

Punch Taverns said it would cover rental payments for pubs affected, but expected its tenants to have loss of earnings cover.

Neil Griffiths, Punch's property and strategy director, said: "With new lettings we get insurers to call them to offer business interruption cover and they have 14 days to respond to this."

Simon Townsend, chief operating officer of Enterprise Inns, said its licensees were expected to have contents insurance, which would also cover loss of profits.

On the issue of rent payments, Townsend added: "The pubs that are being affected detrimentally, we can assist. But we will look at it on a case-by-case basis."

At the Peach Pub Company-owned Fishes, in North Hinksey, Oxfordshire, the entire three-acre beer garden has been completely flooded. But the pub has loss of business insurance, meaning it is covered against this type of disaster.

Assistant manager Keith Woodwell said: "The whole of the back garden looks like a lake. We're on a flood plain, but we've never seen anything like it - it's actually quite spectacular. It will be a good couple of weeks before we re-open."

Meanwhile fears over the knock-on effects of insurance costs and availability of cover for pubs after the disaster have been dismissed by a group representing insurers.

The Association of British Insurers (ABI) said it did not anticipate a rise in premiums, despite it being a busy year for pay outs. So far 1,600 claims from businesses had been put in for the latest floods, with the average claim expected to be around £100,000.

"Cover should still be available but businesses should shop around or talk to their current insurer about what steps to take," an ABI spokesperson said.

Flood advice ​

Environment Agency​

- Be prepared to evacuate

- Heed the advice of the emergency services if you are asked to leave - Be prepared for loss of utilities - Have any essential medication handy as you may be away for a while - Have warm clothes, wellingtons and food and drink supplies ready Floodline - 0845 9881188

Forum of Private Business​

- Register any claims as soon as possible with your insurance company, even if they have not been costed

- Check whether you can go ahead and repair or replace equipment in order to get the business running again

- Make an inventory and take photographs of the damage

- You may be eligible for rate relief so contact your local authority

- Contact your landlord (if you rent your premises) about repairs and ask for a reduction in rent while things are being put right

- Contact your local authority for advice on disposing of any equipment or furniture that may have been contaminated

- Talk to your local regional development agency; some are offering help to businesses affected by the floods.

Licensed Trade Charity​

The Licensed Trade Charity is offering assistance to licensees in need of urgent assistance. Call the Welfare Team on 01344 884440.?