No funds for uninsured businesses hit by floods

Businesses which have lost insurance cover after being flooded are on their own if it happens again — despite a public perception that government support is available.

That’s according to the Clonakilty Chamber of Commerce which has warned that the lack of state aid for such businesses has significant implications and may result in job losses.

“We want to highlight that the government aid that has been announced for victims of flooding does not extend to the business community,” said Robert Walsh of the chamber’s flood committee.

He said that although the Government recently announced flood-aid packages of €70m and €25m respectively, none of these were applicable to members of the business community who were unable to get flood cover and whose premises had been hit.

“In a reply to a parliamentary question put by Deputy Jim Daly, Environment Minister Phil Hogan said the €70m was to be made available for a programme of repair and remediation works to public infrastructure.

“On top of that there was €25m in humanitarian assistance but this doesn’t cover businesses either because the minister said that damage to private business as a result of the recent severe weather and flooding was a matter for the owners of those businesses and their insurers if applicable. He is basically saying he’ll give the money for the repair of roads and bridges and the rest of us can sing,” said Mr Walsh.

Mr Walsh, whose printing business in Clonakilty was flooded on two occasions in the last few years, said he’d been one of those who had wrongly assumed that the Government was prepared to come to the aid of businesses in this predicament.

The floods of 2010 caused some €750,000 worth of damage to his premises and machinery — but at that time he was insured.

However, by the time floods again disrupted his business in 2012, causing some €50,000 worth of damage, Mr Walsh no longer had cover: “In 2012 there was an announcement of €10m in aid. I got an application form and sent it off, but it went down a blind alley. I got no acknowledgement of receipt of the application, let alone any aid,” he said, adding that his business later had to re-locate:

“There was definitely a perception in 2012 that there would be some form of aid for businesses, otherwise I wouldn’t have applied for it,” he said.

“The Clonakilty Chamber of Commerce wants to make it clear to businesses everywhere that you’re on your own if you’re without insurance and have been flooded.”

Mr Walsh said the lack of government support for businesses which lost their insurance and were subsequently devastated by flooding would have inevitable job loss implications for rural towns like Clonakilty:

“A business wouldn’t be able to recover from this on their own without insurance cover or some form of government aid.”

There was enormous frustration over the length of time it was taking for the Government to convince the insurance industry into providing cover for businesses which had previously been flooded, he said, adding that the template of motor insurance levies which covered non-insured drivers should be used to help businesses who were unable to get flood cover.