The British Insurance Brokers’ Association (BIBA) has helped develop a flood insurance product for small businesses excluded from the Flood Re program.

The product was developed after talks with flood risk specialist Landmark, broker Guy Carpenter and scheme provider and managing general agent R&Q Commercial Risk Services.

“We are delighted this scheme will provide protection for many of the businesses that have not been able to buy cover against flood damage,” BIBA CEO Steve White said.

British households are included in the Flood Re program, established in April after devastating floods last year highlighted the need for greater access to affordable cover.

The scheme collects an annual tax from home insurers, which pass on the flood risk part of policies to the reinsurer. The business sector was not included in the scheme.

BIBA says the new commercial product, backed by Lloyd’s underwriting capacity, uses advanced mapping to show specific risk for individual businesses or property.

“The policy, with state-of-the-art mapping technology sitting behind it, and recognition of resilience and resistance measures already in place, will be simple to use and fair,” BIBA Executive Director Graeme Trudgill said.

“It brings the ability to cover the majority of SMEs and leasehold and let properties in flood-risk areas, and for those risks attracting higher excesses an opportunity to buy this back.”

BIBA members could provide quotes from last Wednesday, and cover is available from today.

Federation of Small Businesses National Chairman Mike Cherry says the group has been campaigning for a fairer deal. “For those small businesses that struggle to secure affordable flood insurance, the BIBA scheme is a welcome first step by the industry,” he said.