Businesses warned of the threat of flooding

A staggering 112,000 small businesses (11 per cent) were affected by the floods in 2008, leaving small firms with damaged stock and property and many unable to trade. This stark reality has been brought to light by in-depth research commissioned by Direct Line for Business amongst small businesses and sole traders across the country. Nearly a third (31 per cent) of the businesses affected by the floods did not have adequate insurance to cover the cost of the damage.

Impact of 2008 floods

Many regions across the UK were impacted by the flooding in 2008, resulting in nearly half of those small businesses affected (44 per cent) having their place of business flooded. In addition, a third (31 per cent) of impacted enterprises were unable to operate properly as a result of suppliers being flooded, and a quarter (26 per cent) experienced a decrease in their profits. A further 37 per cent were left with structural damage to their property.

One in six had to close their place of business while the damage was cleared up, while other business owners have experienced longer-lasting effects. One in five (20 per cent) had to temporarily close and as a result were unable to make loan and bill payments on time. The worst affected were the six per cent who were forced to permanently move their place of business.

Small businesses in the following regions were most affected by the floods last year:

Wales (23%)
East Midlands (21%)
North East (21%)
West Midlands (19%)
Yorkshire (14%)

Kate Syred, spokesperson for Direct Line said: "Flooding poses an increasing threat to all businesses and householders, as last year's storms and severe weather have demonstrated. It is vital that small business owners and sole traders take steps to protect themselves against unforeseen incidents, like flooding wherever possible, particularly at a time when finances are already stretched.

"By having protection in place, it could not only reimburse businesses for losses as a result of flooding, but it can also provide much needed peace of mind during such turbulent times. With 56 per cent of small businesses who were impacted by last year's floods experiencing damage to their stock, the cost for replacements, as well as lost business, can add up to a hefty bill."