Secure your action plan for flooding risks...
Unpredictable and extreme weather conditions are having a profound effect on businesses in the holiday sector. It is vital you are prepared in the event of a disaster. Flooding is a significant risk to businesses and organisations.
A relatively small depth of flooding can cause exceptionally high losses, with a depth of flooding of around 30cm likely to cause significant/total loss. Traditionally transferring the risk has been the easiest option but insurers are increasingly cautious around flood risks due to significant losses in recent years.
Insurers also have significant concerns around climate change and the impact this may have on flood losses with greater and more regular extreme weather events being experienced. If you’re unable to get flood cover at a reasonable cost, how else can you protect your park? PIB Insurance Brokers highlights four simple steps to assess and manage flood risk:
"Floods are likely to occur outside of core opening times"
STEP 1
IDENTIFY THE RISK
There are three types of flooding which are considered as having the potential to cause significant disruption in the UK. These are coastal, rivers and streams, and surface water. GOV.UK provides services to tell you the flood risk of an area: www.check-long-term-flood-risk.service.gov.uk/risk www. flood-map-for-planning.service.gov.uk/ The information can be limited but provides an overview of the flood risk.
STEP 2
ASSESS THE RISK AND IMPACT
Where a risk is identified, it is important to understand the extent of the risk and how this might impact on the business. A specialist risk advisor can assist in a number of ways.
There are various levels of attention depending upon the nature of the risk from a simple desktop review providing greater insight to the depths of flooding etc than is provided by the government backed services through a full site survey to a full hydrologists report.
When considering the impact it is important not just to consider the potential for material losses but also the associated interruption to the business and the financial impact which may occur.
FLOODING IS A SIGNIFICANT risk to holiday park businesses and organisations.
STEP 3
CONSIDER RISK TREATMENT OPTIONS
There are various ways to look at flood risk management, this can be site level providing full protection to the site or protection of key assets such as building raised plinths for the location of mobile holiday homes and ensuring site level resources such as electrical and gas/LPG supplies are located above flood risk areas and connections etc are water resistant. A permanent protection will be more likely to be effective than a measure which requires a human response.
STEP 4
PLAN TO MITIGATE LOSS
A good business continuity plan will consider how the potential for the risk occurring is monitored such as receiving alerts from the environment agency and then deciding upon when the emergency.
David Plowman, Head of Property Risk Engineering at PIB Insurance Brokers advises: “Whilst movement of holiday homes is not practical in the event of flood warnings it can be ensured that future homes and replacement homes are built in consideration of the flood risk.
He continues: “There are core service areas within holiday parks, mitigating measures should be focused on these areas as loss of these can significantly impact sales and income dependent upon the business model of the holiday park. “Floods are likely to occur outside of core opening times and the implementation of demountable flood defences could be considered to buildings not in use outside of core season,” David adds.
PIB Insurance
Tel. 0330 058 9863
E. David.Moffat@pib-insurance.com
www.pib-insurance.com
