FloodFlash launches new Business Interruption coverage in the U.S. ahead of hurricane season

‘Flood BI’ will support NFIP and primary flood coverage where BI coverage isn’t available in the United States

New York, NY (May 10, 2024) – FloodFlash, the parametric insurance technology company, is pleased to announce the launch of its new Business Interruption coverage ahead of hurricane season.

Preparing for Hurricane Season

A widely predicted hyperactive hurricane season is on the way. Many experts anticipate huge losses from property damage and Business Interruption (BI). Inefficient insurance claims and recovery processes mean that whole communities can be out for months on end, putting massive pressure on businesses cash flow and ability to service debt obligations. Public entities that rely on hotels and tourist tax revenues are also hit hard.

The challenge that many at risk businesses face? BI coverage simply isn’t available for them. It isn’t included under NFIP policies and private carriers rarely offer standalone BI. In previous years the approach to Hurricane season was accompanied with a collective holding of breath. As the devastating storms loom on the horizon, thousands of businesses and public entities were left to fend for themselves.

This year is different. FloodFlash, the world’s leading sensor-based parametric flood provider, is launching its first product designed specifically to support on BI coverage.

Key product features:

• With no limitations on how clients spend their parametric claim payment, the Flood BI can cover any and all aspects of BI including non-damage BI and denial of access.
• The rapid-payment claims in keeping with the core FloodFlash offering mean that claimants receive the full value of their policy within weeks of flooding
• FloodFlash provides expert support throughout the process, helping on everything from BI limit calculation to sensor placement and policy triggers.

FloodFlash hope to support the many organisations at risk of flooding, not just in the Gulf and Eastern seaboard, but across the US. FloodFlash US Commercial Director Rich Coyle says: “Flooding causes billions of dollars in losses across the US every year. Only 20% of those losses are covered by insurance, and a massive part of that uninsured loss comes from business interruption. The BI options on the market are too few and offered too rarely.

“We couldn’t be more excited to launch Flood BI. It takes the same principles of the FloodFlash product and applies them for a truly underserved section of the market. To the thousands of businesses at risk of flooding that rely on their premises to provide goods, hospitality, healthcare and more, we can now say Flood BI is here to help.”

Product at a glance:

• Product name: FloodFlash – Flood BI
• Limits: up to $5m per location ($2m in FL). Up to $10m available subject to underwriter approval.
• Blanket limit of $10m available for multi-location submissions
• Client appetite: no excluded sectors, particular interest within the following:
  • Hotels & hospitality
  • Sport and leisure
  • Retail
  • Healthcare and assisted living
  • Real estate (inc. tenant rent holiday)
  • Manufacturing (inc. pharma)
  • Municipality
  • Education
• Policy trigger: pre-agreed depth measured by FloodFlash sensor(s)

To learn more, watch Understand FloodFlash in 80 seconds.

About FloodFlash

80% of the world’s catastrophic flood losses aren’t insured. That’s $58bn of uncovered damage, and it’s getting bigger each year because of climate change, population growth and urbanization. FloodFlash is an insurance technology company that combines computer models, cloud software and internet-of-things sensors into flood cover that protects those the insurance industry has left behind. FloodFlash is headquartered in London, is a registered coverholder at Lloyd’s of London and is authorised and regulated by the Financial Conduct Authority. For more information, please visit floodflash.co.

SOURCE: FloodFlash Ltd.

Tags: Business Interruption, FloodFlash, funding, hurricanes, launch, parametric insurance, United States (USA)