At rest, it is often an unpleasant pollutant that’s expensive to clean up. Storm water damage can strike suddenly – snow melt, burst pipes, rapid thawing and summer flash flooding create serious risk issues for a vehicle workshop business. Water risk has traditionally been unattractive to insurers: incidents are few but usually expensive and if your premises are in a known flood zone, it may be tough to get insurance at all.
If your workshop is flooded and the customer vehicles in your care are damaged as a result, where does responsibility lie when it comes to claims?
A typical commercial buildings and contents policy is generally designed to cover your workshop for all risks in the event of fire, flood and theft plus accidental or malicious damage. Our advice is never assume that your current policy covers you regardless. Why? You may have specific exclusions if your business is located in a flood zone. A good workshop insurance policy designed for auto maintenance will not just cover you against general flood damage and your liabilities for customer vehicles on-site, but also provide business interruption cover that can indemnify you against the inevitable disruption to your business during the clean-up.
Ask yourself the following questions – then let us check your buildings and contents policy covers you comprehensively:
- If my premises are located in a flood risk area, how close are they to watercourses and drainage sources?
- Can I move customer vehicles quickly and easily to higher ground in the event of a flood alert?
- Who pays out if customer vehicles suffer flood damage?
- Can I elevate critical stock or machinery and protect any basement areas?
- What are my exact policy exclusions relating to flood damage?
In short, expertise – and the right flood management insurance advice - can make all the difference to your terms, your exclusions, your premium and your business peace of mind.
To learn more about the Automotive practice, and how it could help you and your business, contact the Automotive team on 01582 542 330.