Flood should not be assumed to be automatically covered under every Industrial Special Risks policy.

The treatment of flood depends on the insurer, property location, underwriting assessment and policy schedule.

How can flood be treated? #

Depending on the placement, flood may be:

• Included.
• Included subject to a sublimit.
• Restricted for particular locations.
• Subject to a higher excess.
• Excluded.

A business with multiple locations may also have different flood arrangements applying to different properties.

Why do insurers assess flood separately? #

Flood exposure can vary substantially between locations.

Insurers may consider factors such as:

• Flood mapping.
• Previous flood events.
• Property elevation.
• Construction.
• Local waterways.
• Flood mitigation.
• Stock and equipment locations.

What should a business check? #

The policy schedule should be reviewed to determine:

• Whether flood is insured.
• The applicable flood definition.
• Any flood sublimit.
• The excess.
• Any excluded locations.
• Any special conditions.

Do not rely solely on the overall ISR Limit of Liability when assessing flood protection.