FloodFlash US introduces new program | Insurance business America
Offer is aimed at vehicle dealers
Disaster and flood
By Terry Gangcuangco
FloodFlash US has introduced its Dealer Open Lot program, aimed at dealerships struggling to obtain flood coverage. The initiative comes as the U.S. prepares for a hurricane season that is expected to be one of the worst in years, creating additional risks for auto dealers whose inventory is often located in flood-prone areas.
Vehicle dealers are particularly at risk as cars can begin to float in just 30cm of water and deeper flooding can cause significant damage, leading to significant financial losses.
Recognizing the unique challenges faced by these businesses, FloodFlash’s new program offers specialized parametric flood insurance that activates coverage via a sensor-based system and aims to reduce risk for traders in high-risk areas or for those who have previously people who have experienced flooding.
“Certain sectors continue to be underserved by existing flood companies,” said Rich Coyle (pictured), U.S. commercial director at FloodFlash. “One of the best examples of this is car dealerships. Many insurers fear the possible loss of cars or mobile homes that even minor flooding can cause.
“Our new program is designed to support retailers who have previously struggled to achieve limits that would truly protect their businesses from flooding. It also rewards those companies that take steps to mitigate their flood damage by aligning their risk management practices with lower premiums.”
The Dealer Open Lot program is specifically designed to meet the direct needs of dealers and covers potential losses from inventory damage, business interruption and relocation costs due to flooding.
Each policy includes the installation of a smart sensor on the dealer’s premises to ensure that the parametric insurance is closely correlated with the actual impact of the flood. Additionally, the program promises quick claims payments, with claims settlement typically completed within weeks of the incident.
Features include coverage limits of up to $2 million per location, with possible increases up to $10 million subject to insurer approval. There is also a flat limit of up to $10 million for merchants operating across multiple locations.
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2024-05-10 10:00:00
www.insurancebusinessmag.com
