The Association of British Insurers (ABI) has revealed the extent to which trade credit insurance helped UK businesses in 2009. During the year, insurers dealt with 22,791 claims, with the total amount paid out rising from £164 million in 2008, to £320 million.

According to the ABI survey, the 95% year-on-year increase reflects the ongoing effects of the global recession and the liquidity crisis on UK business.

However, figures for the final quarter of 2009 showed a significant improvement, with the number of new claims received down 23% on the previous three months.

The Associations director of general insurance and health, Nick Starling, comments: “This is consistent with the end of the downward trends observed in various sectors of the economy and the corresponding reduction in levels of corporate failures observed in Q4 2009.”

He adds: “The outlook for 2010, although improved from 2009, remains highly uncertain, which reinforces the importance of protection and risk management services provided by trade credit insurers.”

The Flood and Water Management Bill 2009-10 has received the Royal Assent. The Bill addresses the threat of flooding and of water scarcity, both of which are expected to increase with climate change.

The new legislation requires the Environment Agency to create a National Flood and Coastal Erosion Risk Management Strategy, which a number of organisations will have to follow.  Leading local flood authorities are now required to create local flood risk management strategies and the Bill also introduces a more risk-based approach to reservoir management.

The legislation should enable the Environment Agency and local authorities to carry out flood risk management works more easily.

In addition, it requires the use of sustainable drainage systems in certain new developments and introduces a mandatory building standard for sewers. The cost of the damage caused by the flooding in Cumbria in November 2009 topped £200 million.

According to the Association of British Insurers, its members handled 36,000 claims totaling around £206 million, with 60% of the sum relating to business damage.

Right insurance essential for empty retail units

The recession has left plenty of empty shops on the UK’s High Streets.  In a new survey Aviva has reminded property owners of the importance of having the right insurance in place such as SME Insurance or property insurance.

According to research by Local Data Company, retail property vacancy rates across Britain have risen to 12%, with some towns seeing as much as 24% of shops lying empty. With the biggest two threats to an empty property fire and malicious damage, Aviva advises “now more than ever it’s imperative that landlords take all necessary steps to ensure that their buildings are adequately protected and insured correctly”.

Landlords should therefore notify their insurer when a property becomes empty, implement risk management measures and check out their policy conditions.

The group’s property risk manager, Allister Smith, comments: “Empty units must be adequately protected – every year, over three million properties are vandalised and 25% of this malicious damage occurs in empty properties with arson costing £2 billion.”

He adds: “Landlords also have a duty of care to anyone visiting the property, so failure to remove hazards or have sufficient warning signs, could mean the landlord is liable for any injury, even if a visitor is trespassing.”

David Crowther from Andrew Bourne, the Leicester Insurance Brokers suggests a number of other ways that property owners can ease their worries over empty units “attend immediately to any minor damage; regularly removing graffiti and fly-posters; ensuring intruder alarms and CCTV systems are in working order and continuing the operation of sprinkler systems and fire alarms” comments the Leicester Insurance Broker.