Small businesses in North worst hit by storms

The research by Simply Business found that 59 per cent of the worst-hit businesses, during storms Desmond, Eva and Frank, were SMEs.

Smaller enterprises in the North West suffered the most, with nearly a third, 28 per cent, of the total damage of all storm claims originating from this region.

Yorkshire accounted for 14 per cent of the damage while Scotland accounted for 9 per cent.

Lancaster was the most severely struck, with over a third of claims, 36 per cent, in the North West being made in this city.

Storm Desmond was estimated as the most impactful storm to date, causing 65 per cent of all claims, according to Simply Business.

Storm Eva accounted for 27 per cent of all claims while Storm Frank accounted for 6 per cent.

The findings are based on insurance claims by some of Simply Business’ 350,000 plus small business and landlord customers, between December 2015 to January 6, 2016.

Jason Stockwood, CEO of Simply Business, said: “The storms over the past two months have been truly devastating for microbusinesses and SMEs in the North. Compared to large businesses, SMEs have so much more to lose when a natural disaster strikes.

“For them, it’s not simply a flooded shop floor or a smashed window – but potentially months and months of lost revenue, which over the Christmas period can be so much more damaging.”

While flooding was, and continues to be, a major concern across the UK, the majority of claims from smaller businesses were for storms, 66 per cent, compared to one third of claims made for flood damage, 33 per cent.

Direct Line Insurance Group said it expects the three storms that lashed the UK last month will cost it up to £140m in customer claims.

The insurer said it estimates claims will range between £110m and £140m, hitting both its home and commercial divisions.

Claims in its commercial unit are expected to be between £30m and £40m, which is between £15m and £25m more than in an average year.