PRODUCT: Flood BI

COMPANIES: FloodFlash; Munich Re; and Hiscox.

BEST RATING: FloodFlash is a coverholder at Lloyd's of London with policies backed by A-rated insurers.

AVAILABILITY: Available on an open-brokerage basis.

FOCUS: Ahead of the 2024 Atlantic hurricane season, FloodFlash, the first insurance technology company to offer sensor-enabled parametric flood insurance, launched a product to provide business interruption coverage. The product is a new offering after the company launched a parametric insurance product—FloodFlash—last year.

With a widely predicted hyperactive hurricane season, many experts anticipate huge losses from property damage and business interruption that could devastate businesses and communities for months on end. Flood BI was created because many businesses and public entities are unable to get business interruption coverage, which isn't included under National Flood Insurance Program (NFIP) policies. Further, private carriers rarely offer standalone business interruption. FloodFlash aims to support the many organizations at risk of flooding, not just on the Gulf Coast and Eastern Seaboard, but across the U.S.

“Flooding causes billions of dollars in losses across the U.S. every year, yet only 20% of those losses are covered by insurance—and a massive part of that uninsured loss comes from business interruption," says Rich Coyle, U.S. commercial director, FloodFlash. “The BI options on the market are too few and offered too rarely."

COVERAGE DETAILS: Flood BI can cover many aspects of business interruption, including non-damage business interruption and denial of access. The parametric policy trigger is a pre-agreed depth measured by FloodFlash sensors.

Limits up to $5 million per location are available, with $2 million limits available in Florida. Up to $10 million limits are available subject to underwriter approval and for multi-location submissions as a blanket.

UNDERWRITING: Insureds or agents must complete an application containing property information, including flood history and elevation. FloodFlash will provide a quote with suggested trigger structures. Rates are dependent on location and policy structure.

TARGET: The ideal customer is a combination of three things: It relies on its property to do business; it is a large organization that needs limits in excess of what the NFIP can provide; and it is at higher-than-average risk, suggesting that most private markets would refuse to provide coverage or increase premiums to prohibitive levels.

Target sectors include hotels and hospitality, sport and leisure, retail, health care and assisted living, real estate, manufacturing, municipality and education.

COVERAGE AVAILABILITY: All U.S. states except Alaska and Hawaii.

CONTACT: FloodFlash; +44-795-767-2791.

Will Jones is IA editor-in-chief.