FloodFlash US unveils new program
FloodFlash US unveils new program | Insurance Business America
Catastrophe & Flood
FloodFlash US unveils new program
Offering aimed at vehicle dealerships
Catastrophe & Flood
By
Terry Gangcuangco
FloodFlash US has unveiled its Dealer Open Lot program, targeting car dealerships struggling to obtain flood coverage. The initiative comes as the US braces for a hurricane season predicted to be one of the most severe in years, placing additional risks on auto dealers whose inventories often reside on flood-prone lands.
Vehicle dealerships are particularly vulnerable, as automobiles can begin to float in as little as 12 inches of water, and deeper floods can cause substantial damage, leading to significant financial losses.
Recognizing the unique challenges faced by these businesses, FloodFlash’s new program offers a specialized parametric flood insurance that activates coverage through a sensor-based system, aimed at mitigating risks for dealers located in high-risk zones or those who have experienced previous flooding incidents.
“Certain sectors are underserved by existing flood carriers time and again,” said Rich Coyle (pictured), US commercial director at FloodFlash. “One of the greatest examples of this is auto dealerships. Many insurers baulk at the potential loss of car or motor-home stock that even low-level flooding can cause.
“Our new program is designed to support dealerships that have previously struggled to secure limits that would truly protect their businesses from flooding. It also rewards those businesses that are taking steps to mitigate their flood losses by aligning risk management practices with lower premiums.”
The Dealer Open Lot program is uniquely structured to address the direct needs of dealerships, covering potential losses from stock damage to business interruptions and relocation costs due to flooding.
Each policy includes the installation of a smart sensor on the dealership premises, ensuring that the parametric insurance correlates closely with the actual flood impacts. Moreover, the program promises swift claims payments, with claim settlements normally finalized within weeks of the incident.
Features include coverage limits of up to $2 million per location, with potential increases up to $10 million pending underwriter approval. A blanket limit of up to $10 million is also available for dealerships operating across multiple locations.
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