How FloodFlash helps hospitality businesses minimise disruption after a flood

The hospitality sector contributes a significant amount to the US and UK economy. But finding insurance for these businesses can be difficult. We take a look at the flood risks facing the sector, how FloodFlash can help, and share two case studies.

The flood risk facing hospitality businesses

There’s nothing better than enjoying lunch next to a flowing river, or being greeted with a sea view from your hotel room. Unsurprisingly then, many businesses in the hospitality sector are situated close to rivers or coasts, increasing their flood risk. Inland businesses are also at risk, with surface water flooding posing a significant threat to commercial properties in urbanised areas. 

Hospitality businesses incur many of the same costs as a typical property during a flood: from clean-up and building refurbishment to machine repairs and stock replacement. They are also particularly vulnerable to business interruption issues – paying staff wages during downtime, finding alternative premises for guests, and working to meet food standards.  

The FloodFlash solution

Here are three reasons why more hospitality businesses are turning to parametric as their flood insurance solution:

  1. Any type of hospitality business can get cover with us. We’ve written policies for the smallest restaurants to internationally renowned hotels.
  2. You can tailor a FloodFlash policy to suit the client’s need and risk. Cover the whole flood, a deductible, or top up existing cover. Plus, in the event of a flood, they can use the payout how they like.
  3. Our smart sensor ensures payment within days, meaning a quicker recovery and shorter down-time.

FloodFlash in action: Bon Appétit, Florida

Bon Appétit Restaurant has been Dunedin’s choice for fine cuisine for over four decades. Serving up culinary joy against a backdrop of St Joseph’s Sound famous sunset, it has been voted “Best Waterfront Dining” in Tampa Bay.

Bon Appétit is located right on the waterfront in Dunedin, giving restaurant-goers a fantastic view, but also putting them at high risk of flooding.

Located in the waterfront community of Dunedin on the western coast of Florida, the restaurant is familiar with flood risk in the Gulf of Mexico. Whilst they had found a private flood option in the past, premium increases and limitations on the business interruption coverage meant it was no longer suited to their needs.

After exploring options with their agent and broker, the business realised that a combined NFIP and FloodFlash option offered the best fit. The FloodFlash team carried out a site visit and worked closely with the client, providing insights on the property to better understand the depths of flooding that would causes losses to the business income.

With the help of FloodFlash experts, the business chose a two trigger structure, with payouts at 28 and 40 inches. This helps protect the business from different severities of flooding whilst maintaining an affordable premium. Hear more from the restaurant in this article from the Wall Street Journal.

FloodFlash in action: Engine Social, West Yorkshire

When running a business in the Calder Valley, finding flood insurance can demand far too much attention. That was certainly the case for Engine Social, a small plates restaurant near Halifax.

While restaurant manager Wil managed to find flood insurance for the restaurant, it came at a greatly inflated premium. Thanks to a few conversations with their expert brokers, they took out a FloodFlash policy at a fraction of the price.

As well as freeing up cash to invest back into the business, the quick payout means that in the event of a flood, the restaurant can be back up and running within days. A quick recovery is essential for any hospitality business, minimising revenue loss and disruption at a difficult time. You can hear the full story from Wil and his broker here.

Get weekly updates from Team FloodFlash by signing up to our newsletter. You can also follow us on LinkedIn for the latest news.