The UK has been gripped by snow and ice for the last week or more. It’s been the earliest major snowfall disruption for many years and some are saying is a sign of the winter to come. Transport has been severely disrupted and businesses are now counting the losses caused by non-attendance of staff and inability to open.
RSA, the UK insurance company, has calculated that the cold spell could be costing the UK economy as much as £1.2 billion a day with retailers, restaurants and bars being the worst affected. This couldn’t come at a worse time for business owners as economic woes still impact the UK economy.
On top of these losses the Association of British Insurers has said that burst pipe and leaking water damage costs the UK £7m a day throughout the winter.
So, for businesses this is yet another wake up call that they need to ensure that their policies cover weather disruption and large businesses should have dedicated weather risk management plans and insurance in place. For insurers it’s a sign that they need to be braced for significant claims this year and should be looking at ways to hedge these weather risks so the claims don’t hit their balance sheets.
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