Markets/Coverages: FloodFlash Launches New Parametric Auto Dealer Program

FloodFlash has added a dealer program in its efforts to support more U.S. businesses ahead of a hurricane season that is widely anticipated to be amongst the worst in recent memory.

Stored on large, flat areas of often impermeable land, many auto dealer inventories are exposed to flooding. Cars can float in just 12 inches of water and two feet of water will drag away most smaller vehicles. Unavoidable flood damage can lead to vehicle write off and huge disruption to dealers around the country.

The FloodFlash Dealer Open Lot program is designed to support risk managers with the first sensor-enabled parametric flood insurance. The product offers limits of $2 million per location, up to $10 million subject to underwriter approval.

Key product features:

• Designed around dealerships: this new program can be used for any losses associated with flooding including stock damage, relocation and business interruption.
• Parametric without the basis risk: each policy comes with a smart sensor installed on the lot or insured property. This means parametric measures behind the policy correlated closely with actual losses.
• Rapid-payment claims: the sensor sends claim data in the time it takes to send a SMS. Average claim payment happens a couple of weeks after the flood.

“Certain sectors are underserved by existing flood carriers time and again. 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,” said FloodFlash US Commercial Director Rich Coyle. “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.”