FloodFlash, a parametric insurance technology company, is launching a new product to offer business interruption (BI) coverage in the US.
The launch comes ahead of the anticipated hyperactive 2024 Atlantic hurricane season.
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Called Flood BI, the new solution aims to address the challenge many businesses and public entities face in obtaining BI coverage.
FloodFlash noted that BI coverage is not included under National Flood Insurance Program policies and is rarely offered as standalone coverage by private carriers.
The Flood BI product is designed to support organisations at risk of flooding across the entire US, not just those in the Gulf and Eastern seaboard.
One of the key features of Flood BI is that there is no restrictions on how clients can use their parametric claim payments.
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By GlobalDataThis flexibility allows for coverage of various aspects of BI, including non-damage BI and denial of access.
FloodFlash said the rapid-payment claims process is a core component of its offering, promising full policy value payouts within weeks of a flooding event.
This expedited claim service is crucial for businesses needing immediate funds to recover from interruption losses.
FloodFlash will also provide expert support to clients, assisting with everything from calculating BI limits to the placement of sensors and setting policy triggers.
The coverage limits offered by Flood BI are up to $5m per location, and $2m in Florida.
For larger needs, up to $10m is available subject to underwriter approval, and a blanket limit of $10m for multi-location submissions.
The sectors that can benefit from this coverage include hotels and hospitality, sport and leisure, retail, healthcare and assisted living, real estate, manufacturing, municipality, and education.
FloodFlash US commercial director Rich Coyle said: “Flooding causes billions of dollars in losses across the US every year yet 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 could not be more excited to launch Flood BI. It takes the same principles of the FloodFlash product and applies them for a truly under-served 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.”
Founded in 2019, UK-based FloodFlash utilises data modelling and IoT technology to provide cover.
Backed by Munich Re, FloodFlash expanded into the US insurance market in early 2023.
