Floods could result in pub business failures

These are the stark warnings from UK insurance brokers in light of the North Sea surge along the east coast last Thursday and Friday (5 and 6 December).

'Devastating'​

Christian Wheeler, new business development executive at the Bateman Group, said: “If the building needs drying out it can take an awfully long time, and if you can’t get the pub fit for purpose then you’re not going to be able to open, so there will probably be closures.

“Money’s tight and a lot of them [publicans] aren’t turning over a great deal of money, so this flood has been devastating.”

Flood insurance​

Christie Insurance managing director Walter Murray also warned that many publicans do not have suitable insurance to cover loss of trade during disasters such as floods, and brokers may stop covering flood damage altogether if the Government does not sufficiently invest in flood defences.

“The biggest debate comes with loss of profit — people have a tendency to understate the amount they should insure for. That will cause the insurance company to say, look you’ve understated by 50%, so we’ll only pay you 50% of your claim,” he said.

“The insurance industry provides flood cover for most locations in the UK, but it is now saying to the Government, if you don’t continue to improve the flood defences, we may withdraw cover from commercial premises, which would include pubs.”

Interruption to trade​

Nick Attfield, licensee of the Harbour Inn in Southwold, Suffolk, said there was 5ft of water in the bottom bar and 4ft of water in the kitchen of his pub on Friday (6 December).

“The interruption to trade is my biggest headache. Between the two sites [also the Bull Inn, Walberswick] I’d normally make £60,000 to £70,000 over Christmas. I’m concerned how it will impact on my cash flow for January and February,” he said.

Community hubs​

However, pubs unaffected by the floods, such as the Lighthouse Inn, in Walcott, Norfolk, have become community hubs, providing shelter for local residents.

Lighthouse Inn licensee Steve Bullimore said: “I had just over 100 people here last night (5 December) and about 40 sat in the pub all night because their homes have been badly damaged. I’m what’s known as the safe house."