Why manufacturing businesses choose FloodFlash to reopen faster than ever

Authored by FloodFlash

We take a look at the risks facing manufacturing businesses, and why FloodFlash is an excellent option to support their flood insurance needs.

Manufacturing and flooding – what’s the risk?

In the past, it made sense to locate factories near waterways or the coast – water provided transport and power. But now, with the rising risk of flooding, this makes them more and more vulnerable.

In fact, over a fifth of the British commercial properties at risk from flooding are in the manufacturing, wholesaling and logistics categories. More than 10% of these businesses have a significant risk of flooding. 

For the manufacturing sector, the impact of a flood can be huge. Flood damage can come from anywhere: buildings, stock, machinery, processes, vehicles, distribution and order fulfilment can all suffer. The complexity associated with manufacturing business only adds uncertainty.

Manufacturing is one of the industries most impacted by rising flood risks, due to their location and the huge impacts a flood can have.

The FloodFlash solution

Here’s five reasons to consider FloodFlash for your at-risk manufacturing clients:

1. We review quotes no matter the flood risk or history. Great for those near rivers and waterways, by the coast, or in high-risk areas. 
2. We’ve helped a wide range of manufacturing businesses get cover, from paper manufacturers in Lancaster to pharmaceutical manufacturers in Massachusetts. Plus, whatever the need, we can help – from full cover to an excess or top-up. 
3. Our smart sensor ensures payment within days, meaning a quicker recovery and shorter down-time for manufacturing businesses. 
4. A FloodFlash policy is flexible and can be tailored to your client’s business and risk. Resilience measures in place? Set a higher trigger depth, or choose a payout to cover denial of access at lower depths.
5. Business interruption can take many forms. Businesses can use their FloodFlash payout to cover cleanup, building repair, machinery, contract disputes, or hiring alternative distribution.

FloodFlash in action: a manufacturing case study

With sites across the UK, the client provides textiles across a range of sectors. After flooding in 2020, traditional insurers imposed £1m excesses on four of the sites.

The client was willing to self-insure part of the excess at each site, but did not want to pay the full excess in the event of a flood. 

With the help of their broker, they were able to plug the gap in their cover with a two-trigger policy at each site. If water reaches the first trigger depth (0.4m or 0.6m depending on the site), they will receive £250k; if water reaches the second trigger depth (1m), they will receive £500k. 

While the policy is designed to cover the majority of their excess, they can use the payout how they wish. They can cover clean-up costs, account for business interruption, or pay the excess on their primary policy – it’s up to them.