Chubb report finds US companies lack knowledge of flood risk.

A recent study from Chubb reveals that many mid-market companies in the US are unprepared for the risks posed by flooding. The study, which surveyed insurance brokers, found that a staggering 85% of businesses mistakenly believe that their property insurance covers flooding. This misconception, coupled with a lack of awareness about the frequency and cost of floods as natural disasters, highlights the urgent need for education on flood risk.

According to the report, floods have cost taxpayers over $850 billion since 2000, making them one of the most expensive natural disasters in the country. With extreme weather events becoming more common and severe, it is crucial for businesses to understand their exposure to flood risks. Key findings of the study include the fact that a majority of companies do not purchase flood insurance because they assume it is already covered in their property policy.

Brokers also noted that their clients often lack knowledge about the prevalence and costliness of floods. To address these gaps in understanding, businesses are advised to assess their flood risk factors, seek insurance quotes, utilize technology to build resilience, and engage with insurers regularly. In light of these findings, it is clear that more needs to be done to educate both businesses and consumers about the importance of flood insurance and risk mitigation strategies.

By taking proactive steps to protect themselves against the financial and operational impacts of flooding, companies can better safeguard their future.