News

December 18, 2009

Firms urged to reduce risk of costly insurance claims this Christmas

Small firms that have to claim for damage caused by frozen pipes or water leaks this Christmas may face a 27 per cent rise in claims costs, insurance firm Aviva has warned.

With the Met Office forecasting a colder than average winter, the insurer has predicted that that the number of commercial claims for frozen pipes and water leaks will increase by 20 per cent between December and February.

According to Aviva, businesses should carry out risk management measures to protect their property. “Water damage claims tend to peak during the first two weeks of January at the same times as owners return to their premises following the festive break,” said Aviva property claims manager, Paul Reddington.

“Any long period of closure can mean water damage escalates — for example, the leak could remain undetected during holiday periods or even during the night or at weekends,” he added.

“Businesses closing down for Christmas should take some simple precautions ahead of any potential cold snap, to prevent expensive damage occurring,” said Reddington. “The damage and cost to a business as a result of water escape can be just as devastating as that of a fire or flood. A quick daily visit to premises to check all is well is the best approach. This small investment in time can save weeks of business interruption.

“To avoid the problem of water escape from the outset, plumbing systems must be up to standard and serviced regularly,” he added. “Automatic cut off and isolation systems should be considered in some circumstances. Having a business continuity plan in place is also key to minimising the effects and getting the business up and running as quickly as possible.”

• For more information on insuring your business, visit the Health, safety premises section of the Business Link website